Weale: Quarter three growth should show improvement

Britain's economy is likely to expand by more in the third quarter than it did in the second three months of the year, and a second round of quantitative easing is not needed now, Bank of England policymaker Martin Weale said on Thursday.

Speaking to BBC Radio Scotland, Weale said he had ditched his call to raise in interest rates from a record low of 0.5 per cent at this month's rate-setting meeting because the international economic situation had weakened.

"In the third quarter actually I do think it's quite likely that the published growth figures will look better than they did in the second quarter," Weale said.

"Underlying growth is nevertheless likely to be somewhat weaker. Looking into next year, it's perfectly possible that we will be back towards trend economic growth."

The economy grew just 0.2 per cent in the second quarter of this year, after effectively flatlining for the previous six months. Both Weale and Bank chief economist Spencer Dale dropped their calls for higher rates this month.

Weale said he would never write off the chances of another recession but that more asset purchases were not necessary at the moment, arguing the inflation rate remained very high.