SNP URGE UK TREASURY CAUTION BEFORE EMBARKING ON NON-STANDARD MEASURES.

SNP URGE UK TREASURY CAUTION BEFORE EMBARKING ON NON-STANDARD MEASURES.

NO QUANTITATIVE EASING WITHOUT COMMONS APPROVAL FIRST.

SNP Treasury spokesman, Stewart Hosie MP, has welcomed the latest interest rate cut by the Bank of England's Monetary Policy Committee but warned that, should this cut and the fiscal stimulus packages already announced fail to turn the economy around, the Treasury may be forced to consider more radical and non-standard action.

Commenting, Mr Hosie said:

“While this measure is welcome insofar as it may boost the credit available to struggling businesses, it puts the UK economy in an unprecedented situation.

“As we approach a zero percent interest rate position, the Chancellor and the Bank of England may be forced to consider non-standard action such as quantitative easing.

“The Japanese experience of quantitative easing gives little comfort that any additional lending would be forthcoming. It would be a risky course of action to take. In my view, such a non-standard course of action would require approval by the House of Commons.”