MPC members split over £25bn QE injection
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Members of the Bank of England Monetary Policy Committee were split over the Bank’s decision to pump an additional £25bn into the quantitative easing scheme.
Latest minutes from an MPC meeting reveal that some members believed pumping further money into the scheme could result in unwarranted increases in some asset prices that could prove costly to rectify, therefore complicating the task of meeting the inflation target in future.
When invited to vote on whether the Bank should inject a further £25bn, seven members of the committee, including Bank governor Mervyn King, voted in favour of the proposal.
However, two members voted against the proposal, including Spencer Dale, who preferred to leave the size of the asset purchase programme unchanged at a total of £175 billion, and David Miles, who preferred to add a further £40bn to a total of £215bn.
The Committee agreed that any extension to the asset purchase programme should last three months.
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