View more on these topics

Carney’s first MPC meeting unanimous in vote to hold QE

Bank-of-England-Building-BoE-Bus-700x450.jpg

The monetary policy committee unanimously voted to hold quantitative easing at £375bn in July, minutes from Bank of England governor Mark Carney’s first meeting show.

MPC minutes from its 5 and 6 July meeting, published today, show member were united in voting to hold interest rates at 0.5 per cent and QE at £375bn despite three members voting to raise it by a further £25m last month.

Paul Fisher and David Miles both changed their vote this month to hold QE, while former governor Sir Mervyn King, who voted for more QE in June, has now left the committee.

The July minutes show the committee was concerned about recent market volatility after the US Federal Reserve signalled it would be withdrawing QE.

It re-iterated its intention to keep interest rates low for some time, claiming recent positive economic data is not enough to warrant rate rises.

The minutes state: “For most members, the current policy setting was appropriate and the onus on policy at this juncture was to reinforce the recovery by ensuring that stimulus was not withdrawn prematurely, subject to keeping inflation on track to hit the 2 per cent CPI inflation target in the medium term.

“The recent rise in market interest rates, were it to be maintained, would represent such a premature withdrawal, but the proposed statement from the committee should help to prevent that.”

The minutes also credited the funding for lending scheme with improving UK lending conditions and said it could precipitate growth on the back of an improving housing market and consumer spending.

It said it expects CPI inflation, which hit 2.9 per cent in the year to June, to fall back to 2 per cent as “external price pressures” fade.

Recommended

Peers keep fighting for regulated LTC advice referrals

Cross-party peers are planning to table further amendments to the Care bill calling for regulated advice referrals for long-term care funders after the Government rejected initial amendments. The Care bill says councils must signpost funders to “independent financial advice”, which could mean IFAs or charities as there is no requirement that the advice is regulated.  […]

FOS launches new website to publish decisions

The Financial Ombudsman Service has launched a new website publishing its decisions from 1 April under new transparency rules. The Financial Services Act, which came into effect on 1 April, forces the ombudsman to publish all decisions. A total of 1,253 decisions have been published this week showing just 329 claims upheld. The Ombudsman Decisions […]

9

FCA fines Swinton Group £7.4m over missold insurance

The Financial Conduct Authority has fined high street insurance broker Swinton Group £7.4m over its “aggressive” sales strategy when selling add-on insurance policies. Between April 2010 and April 2012, Swinton sold personal accident, home emergency and motor breakdown policies, generating income of £92.9m. The FCA says: “Swinton’s aggressive sales strategy meant it failed to treat […]

Artemis Global Income: favouring Europe over the US

With a 10 per cent return from his Global Income Fund in the first three months of 2015, Jacob de Tusch-Lec talks to journalist Alexis Xydias about the drivers and why he favours Europe and Asia over the US. Jacob believes European companies remain cheap and is still finding opportunities amid value stocks – in contrast […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment