Threat of double-dip recession raised again
Domestically, accountants BDO Stoy Hayward have said the inflation risk in the UK may be exaggerated and urged the Bank of England to consider a return to a policy of quantitative easing.
Experts have warned about the fragility of the UK and the global recovery with a UK accountancy firm suggesting the Bank of England consider a return to quantitative easing.
Peter Hemington, a partner at BDO, the country's fifth-largest accountancy firm, said: "We must not exaggerate the threat of inflation to the UK economy as wage inflation remains contained and commodity prices have started to come down.
"The economic recovery is set to remain unspectacular for the rest of 2011. Therefore, we believe that calls for a rise in interest rates are premature. As a fiscal ‘Plan B' looks pretty unlikely, the Bank of England should not discount the possibility of a further injection of quantitative easing."
There is a statement on the BDO's website.
Globally, the New York economics professor who predicted the financial crisis Professor Nouriel Roubini has warned the world faces a one in three chance of a double dip recession with the other options a continued anaemic recovery while the most optimistic scenario continued expansion.
Roubini is worried by the failure of debt restructuring in Europe, Japan's stagnation and the slowdown in China, increasing interest rates across Asia and stubbornly high US employment.
He said: "Everybody's kicking the can down the road of too much public and private debt. The can is becoming heavier and heavier, and bigger on debt, and all these problems may come to a head by 2013 at the latest."