Deficit reduction plan shot to pieces

Richard Wellings appears on Swiss Financial Television

Richard Wellings appeared on Swiss Financial Television to discuss today's release of the Bank of England minutes and what he expects from the Budget.

Dr Wellings agreed with the decision that more asset purchases by the Bank would be dangerous. Inflation has generally been above target for the past seven years so the Bank is in danger of losing its credibility. This decision may help ensure that inflation does not get out of hand.

Regarding the Budget, Dr Wellings stated that Osborne has little room to manoeuvre. The deficit is still a big problem as a result of poor growth so few tax cuts can be expected but simplification of the tax regime would reduce compliance costs of businesses.

Watch the full interview here.

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