MPC united on QE
MEMBERS of the Monetary Policy Committee were unanimous in deciding not to inject further cash into the economy this month.
Minutes of the MPC’s August meeting, published this morning, show that the committee felt the economy was stronger than the second quarter GDP figure of -0.7% suggested.
According to the minutes, “most members” felt the decision to hold on further quantitative easing was “relatively straightforward” as it would allow the committee to see the impact of the Bank’s new ‘Funding for Lending’ scheme.
However, some members felt there was a “good case” for expanding QE just a month after the committee had increased the value of the Bank’s asset purchase programme by £50bn to £375bn.
Coverage of the MPC’s decisions is brought to readers of TheBusinessDesk.com in partnership with stockbrokers Redmayne-Bentley.
