View more on these topics

All nine back rate hold but Posen is sole voice again for £50bn QE2

All nine members of the Bank of England’s monetary policy committee voted to keep bank rate on hold at 0.5 per cent in September, according to the latest MPC minutes.

This is the second month all nine members have voted to keep interest rates on hold, which has been at the record low level since March 2009

In July, two MPC members, Spencer Dale and Martin Weale, voted in favour of a 0.25 per cent base rate rise.

MPC member Adam Posen once again called for a further £50bn of quantitative easing in September.

Capital Economics UK economist Samuel Tombs says: “The minutes of September’s MPC meeting strongly suggest that QE2 is set to be launched in the very near future. Admittedly, no other members joined Posen in voting for an instant resumption of the asset purchases. However, most members of the committee accept that the case for immediate policy stimulus has significantly strengthened over the last month. The debate is now how to provide that extra stimulus.”

Tombs predicts that a further £50bn of gilt purchases will be announced in November.

Chadney Bulgin mortgage partner Jonathan Clark says: “There were no surprises in this meeting. I think it is good news that Posen is thinking about quantitative easing because it will put some pressure on the bank to make that happen.”

Recommended

Ed Miliband

Labour in Liverpool: A conference in pictures

A year after being elected as leader, Ed Miliband, short on policies thanks to being half way through his policy review, tried to set out a vision to delegates and the country for where Labour is heading. A moralistic tone was evident in speeches about predatory versus producing business and the moral and ethical, rather […]

Cause and effective

Applying a form of wrapper allocation when determining wrapper choice may help to deal with future tax risk

Government Omo chief forced to stand down

The chairman of the DWP-led Omo working group has been forced to step down due to concerns about the slow progress of negotiations. Money Marketing understands that the Government-appointed civil servant who previously chaired the group has been replaced after members voiced concerns about a lack of urgency in bringing forward reform proposals. It is […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com