Corporate banking relieved as UK 'unlikely to require cash injection'?

Corporate banking groups may be pleased to hear one body believes the UK economy is strong enough to resist the need for further quantitative easing.

Coming after the Federal Reserve announced a package of $600 billion (£372 billion) fiscal stimulus for the US economy, Andrew Goodwin, senior economic advisor to the Ernst & Young ITEM Club, argued the same will not be needed in Britain.

The wealth management expert stated: "We are likely to see a softer patch around the turn of the year, but we believe there is sufficient momentum and another cash injection is unlikely to be required."

Those engaged in corporate banking may see this as a positive sign, suggesting the recovery is on track and demand for goods and services could pick up in 2011.

Similarly, businesses and foreign investors might look upon the country more favourably as a result, with the UK strengthening its reputation as a desirable location for commercial activity.  ADNFCR-2318-ID-800222186-ADNFCR