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2011.05.2405:04:00UTC+00Boe's Fisher: Weak Consumer Demand may Get prolonged in Uk if Economy Faces another Shock

News:

  • BOE's Fisher said that weak comsumer demand in UK may be prolonged if the economy suffers another shock.
  • The newspaper reported that Fisher may consider extending BoE's quantitative easing asset purchases.
  • The paper said that BOE's kept its central projection intact that inflation would fall back to the set target over the medium term.
Qutoes:
  • "We've had three years where real household post-tax income has been flat so I am quite nervous that the wrong sort of shocks could prolong the (current] period of weakness," Fisher told the Scotsman in an interview. 
  •  "We could very easily see a sharp fall back in inflation if commodity prices were to fall for example. It's a very uncertain picture around which we don't have a lot of confidence. But our central expectation is for inflation to fall back to the target. At the moment, if anything wages look a bit too low rather than too high," Fisher said.

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