British Economy Expanding, Says BoE's Sentance: Report

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Wednesday, Bank of England's Monetary Policy Committee member Andrew Sentance said the British economy is expanding again. In an interview with Sky News, Sentance said, "When the exact turning point took place is difficult to pin point and it may take the official GDP figures a while to catch up."

Yesterday, the Office for National Statistics revised the economic contraction for the third quarter to 0.3% from 0.4%. The economy contracted for the sixth straight time in the third quarter of 2009. This continuous decline in gross domestic product was the longest stretch since records began in 1955.

Earlier this month, the central bank had raised the size of its quantitative easing measures by GBP 25 billion to aid the ailing economy. Sentance said, "We had to inject this extra money because there has been a very strong headwinds blowing." The headwinds from global economy is easing and consumer confidence is beginning to recover, he added. "We still have the drag from the financial sector - the legacy of the problems from the financial crisis. Quantitative easing is having to offset those and give the economy more of lift than would be necessary."

Bank of England's Monetary Policy Committee member Andrew Sentance said the British economy is expanding again. (Market News Provided by RTTNews)