Dr Cable also suggested the Bank of England may have to engage in more quantitative easing (QE) as growth stalls. He said that the deal struck in Europe last week to bail out countries such as Greece and Ireland had been a "significant step forward".
And in the same interview yesterday he made an astonishing attack on the “right-wing nutters” in the US Congress, who are rejecting a deal over the debt ceiling, saying that they pose a greater threat to the global economy than the eurozone crisis.
Republicans and Democrats have until August 2 to raise the nation's $14.3 trillion (£8.8trillion) debt ceiling. Failure to do so will leave markets facing the prospect of the first ever, major default by the United States.
Coming back to the picture in the UK, Dr Cable said: “"It is not surprising that it isn't great because of the problems we inherited." He added that there was also evidence of "rebalancing" in the economy, and the "beginning of the rebirth of manufacturing and exports".
And speaking of quantitative easing (QE), he said that that would be the right approach if consumer demand remained suppressed and agreed with the Chancellor that the Government should not revert to a ‘plan B’.
"... if there is a sustained period of weakness of demand, the right approach to that is not for the government to relax its fiscal discipline. We have to keep that going,” he said.
"It is about the Bank of England pursuing policies of low interest rates that also helps keep our exchange rate down and helps exports... also using the expansion of QE perhaps in more imaginative ways, not just acquiring government securities. If we have a continuing problem of weak demand that is the way to deal with it," Dr Cable added.
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