Sentance warns of need for restraint on spending growth MPC member says tight fiscal policies are required
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Summary
ANDREW Sentance, a member of the Bank of England's Monetary Policy Committee, warned last night in Aberdeen that tight fiscal policies required to reduce very large public sector deficits would likely need to be sustained for five to 10 years.
Noting the UK's public sector deficit was projected by Chancellor Alistair Darling at around 12per cent of gross domestic product in each of the 2009-10 and 2010-11 fiscal years, Sentance said: "Fiscal consolidation will require restraint on the growth of public spending and, if taxes have to rise, it will have an impact on private consumer spending, too. Given the scale of excess consumption which has built up over the last decade, and the large fiscal imbalances which are now apparent, tight fiscal policies are likely to need to be sustained for five to 10 years."See the full content of this document
Extract
Sentance warns of need for restraint on spending growth MPC member says tight fiscal policies are required
Sentance, speaking at a Scottish Council for Development and Industry dinner, hammered home the need for businesses to look through the immediate troubles and focus on th...
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