Lib Dems call for action as inflation slows - Loans - News |

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Lib Dems call for action as inflation slows

Lib Dems call for action as inflation slows

Category: Loans

Updated: 24/05/2017
First Published: 18/02/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

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.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.