The Bank of England has ended quantitative easing, the policy designed to stimulate economic growth. Around £200 billion has been spent on assets such as government bonds to boost bank lending.
Interest rates were held for the 11th month at a record low. House prices have risen for the seventh consecutive month.
Our own economic surveys show that improvements are happening. So, is the recession really over?
Local business confidence is higher than for almost two years and signs are getting better. Yet there is still much nervousness among businesses – and with good reason.
There is concern that QE will push up inflation; that public spending cuts and possible tax rises will force a ‘double dip’ recession; and there are still too many firms with slim order books or cash-flow difficulties.
These concerns are compounded by a refusal to commit investing for this year until it is clear what policies a future government will pursue.
You can’t blame businesses for being cautious. Excessive red tape and complex support programmes have left many weary, and wary, of most political colours.
A patchy recovery seems likely for 2010. Confidence levels across Yorkshire are higher than the national average, with Bradford fourth out of eight in the region. There is light at the end of the tunnel.
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