Bank of England split on QE decision
23 November 2009
Minutes from the Bank of England`s most recent Monetary Policy Committee (MPC) meeting show that policymakers were split three ways over the decision to extend the Bank`s quantitative easing (QE) scheme.
Earlier this month, the Bank decided to pump a further £25bn into the economy in an attempt to boost bank lending and help the economy grow.
MPC meeting notes show that seven of the nine policymakers voted for this extension, while one voted for a £40bn extension and one voted for no change.
Bank of England chief economist Spencer Dale, who voted for no change, argued that any extension in quantitative easing could push inflation beyond the official 2% target.
Analysts have said that the meeting notes suggest no further extensions will be made to the QE scheme, according to the BBC.
Tags: bank of england, quantitative easing
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