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King outvoted on quantitative easing

The Bank of England’s Monetary Policy Committee minutes show that Governor Mervyn King wanted to pump a further £75bn into the economy but was outvoted by other committee members.

On August 6, the committee announced it was maintaining bank rate at 0.5 per cent and outlined plans to finance a further £50bn of asset purchases by the creation of central bank reserves, bringing the total to £175bn.

But the MPC minutes, published today, show that while six members of the committee voted in favour of this proposition, three members, including King, voted against it, preferring to increase the size of the asset purchase programme by £75bn to £200bn in total.

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