Breaking news: MPC confirms QE ‘hold’

THE Monetary Policy Committee heeded calls not to pump more money into the economy today amid concerns about inflation.

The MPC decided not to expand the Bank of England’s quantitative easing despite pressure from two members last month to add an extra £25bn.

Members of the MPC also voted to hold the Bank’s base rate at its record low 0.5%.

Coverage of the MPC is brought to readers of TheBusinessDesk.com in partnership with stockbrokers Redmayne-Bentley.

Senior stockbroker David Scott said: “Signs that the economy will possibly avoid a recession and worries about potentially stronger inflation are likely to have been central in the Bank of England announcing no more monetary stimulus today, a stance increasingly likely to persist at May’s meeting also.

“Although in February and March two of the nine rate-setters on the Bank’s Monetary Policy Committee voted for more gilt buying and may have done the same again this month, the momentum for more quantitative easing is fading as the economy exhibits some signs of  life after contraction in late 2011.

“Minutes from the MPC’s March meeting, when it left the policy on hold, indicated growing concern among policymakers about the impact of higher oil prices and future wage rises on inflation and since then oil prices have continued to rise.

“Market expectations remain that interest rates are expected to stay at their record low of 0.5% until at least the end of 2013.”