Worst of recession could be over says leading economist

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A leading UK economist has told the Western Mail newspaper that the worst of the recession could be behind us.

While David Miles, chief UK economist with Morgan Stanley, stopped short of any references to “green shoots of recovery”, he did say: “I’m less pessimistic than many of where the economy may be going.”

And Miles, who in June is set to join the Bank of England’s Monetary Policy Committee, said that tax cuts and lower interest rates should by now have helped boost demand.

He said: “Economic history teaches us that a combination of tax cuts, running large fiscal deficits, substantial cuts in interests rates and more quantitative easing is likely, with a certain time lag, to have a substantial impact on demand in the economy. That’s not a confident prediction but a judgment about what may be the case.”