The Bank of England looks likely to issue another bout of quantitative easing after a monetary policy committee member broke ranks and called for a £50bn QE boost this month.
Minutes from the Bank’s October 6-7 MPC show member Adam Posen called for extra QE on top of the £200bn of capital injected into the economy since November 2009.
MPC member Andrew Sentance put in his fifth consecutive vote for a 0.25 per cent rise in interest rates from their all-time low of 0.5 per cent.
But the remaining seven MPC members voted for no change in the UK’s monetary policy. The minutes say: “The potential upside risk to inflation expectations did not seem to have changed substantially since the previous MPC meeting.
“Earnings and money growth remained weak but increases in commodity and measured import prices, the 3 per cent sterling depreciation in the past month and their likely impact on CPI inflation in the near term had the potential to exacerbate this risk.”