According to the Telegraph newspaper, Prof Blanchflower said: "What I'm most worried about is that the moment we start to see a recovery, the MPC stamps all over it and destroys it."
The base rate has been slashed to a record low of 0.5 per cent since late last year, but in recent weeks the Bank of England governor, Mervyn King has spoken about tightening monetary policy and a possible exit strategy from quantitative easing.
However, Prof Blanchflower, who will step down next month, has said that it is too soon to discuss exit strategies, adding: "I am concerned that the people who got it wrong on the way down will get it wrong on the way out, maybe even for the same reasons."
Leave a comment