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Bank of England increases QE by £50bn

The Bank of England’s monetary policy committee has voted to increase the size of its programme of quantitative easing by £50bn bringing the total to £375bn.

The minutes from last month’s MPC meeting shows BoE governor Mervyn King voted to increase the QE programme by £50bn to £375bn but was voted down after five of the nine members called for QE to remain at £325bn. The minutes of today’s meeting will be published later this month.

King was joined in calling for the £50bn increase by fellow MPC members Adam Posen and David Miles. Committee member Paul Fisher voted for a £25bn increase to the programme.

The MPC decided to hold base rate at a record-low 0.5 per cent, where it has been since March 2009.

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. We are going the same way that the German economy went in the 1930’s

    We have virtually no gold reserves to back this up, just printing paper.

    It’s a daft idea and will end in tears all round

  2. Ned – I agree. If the medicine doesn’t work, why keep giving it to the patient?

    If I was cynical I would say it’s because the decision makers have a vested interest in propping up the banks.

    My suggestion to Merv for what it’s worth (he must read MM right?):
    1. stop devaluing our currency
    2. separate the retail banks from the gambling hedge funds
    3. re-introduce the banking laws of 10 years ago before the banks were allowed to decide which regulations they like the look of
    4. lock up a lot of dodgy dealing hedge fund bankers

    Simples!

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