MPC split on QE minutes reveal
BANK of England governor Mervyn King wanted to pump an extra £50bn into the economy but was outvoted by members the Monetary Policy Commitee.
Minutes of the MPC’s June meeting show four members of the committee voted to increase the Bank’s QE programme but five wanted to see no change.
Of the four who voted for extra QE, Sir Mervyn and two others wanted to increase the programme by £50bn while Paul Fisher was calling for a £25bn injection.
The committee was unanimous in its decision to hold the Bank’s base rate at its record low of 0.5%.
Coverage of the MPC is brought to readers of TheBusinessDesk.com in association with Redmayne-Bentley.
Lauren Charnley, from Redmayne-Bentley, said the minutes showed a downward revision in estimates for UK growth this year had played a key role in the MPC’s discussions.
“It is clear that whilst sentiment in the markets has improved after inflation fell to 2.8 per cent in May, all is not cured. Growth concerns extend to emerging markets also, as a range of indicators slowed during the second quarter. Eurozone worries remain at the forefront of investor’s minds, with Spanish bond yields soaring and the Greek politicians attempt to form a government.”
The minutes of the last MPC meeting were published this morning as new figures showed that the number of people out of work fell by 51,000 in the last three months.
