The Bank of England must take action to ensure that the supply of credit is improved, it has been stated.Vince Cable, shadow chancellor for the Liberal Democrats, noted that deflation is becoming a relevant concern.He was commenting on Office for National Statistics figures that showed the consumer prices index rate of inflation continued to slow in January.The figure was down to three per cent, having been at 3.1 per cent a month earlier - although the decline was not as sharp as predicted.And Mr Cable suggested that deflation is now a "higher risk" than inflation, remarking: "It is inevitable and sensible that the Bank of England should be moving towards expansion of credit and the money supply directly."The possibility of deflation has been a factor cited by the Bank when lowering the official base rate, moves that may have led to lower interest charges for those with secured loans.
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