Liberal Democrats in Business

News and views from the Lib Dem Trade and Industry Team, Vince Cable and Brian Cotter

Bank of England Caught Between Boom and Bust

3.39.14pm BST (GMT +0100) Mon 5th Apr 2004

Reacting to this morning's index of production figures showing manufacturing output falling, Dr Vince Cable MP, Liberal Democrat Shadow Chancellor, said: "With manufacturing back in recession people are justifiably anxious about their jobs."

"Today's figures show that the economy continues to be fundamentally imbalanced."

"Faltering manufacturing on the one hand and a house price boom on the other means the Bank of England is caught between curbing a consumer boom or preventing an industry bust."

"Britain's twin problems of runaway consumer spending and manufacturing in recession cannot be resolved by the Bank of England alone."

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