MPC far from calling for more QE, says Tucker

Bank of England deputy governor Paul Tucker has told MPs the Monetary Policy Committee is a long way from calling for extra stimulus for the economy.

Minutes from the June meeting of the MPC show the committee was split 7-2 in favour of keeping base rate at 0.5 per cent after Ben Broadbent replaced Andrew Sentance on the committee. Spencer Dale and Martin Weale both called for an increase.

Adam Posen, an external member, has been voting for an additional £50bn cash injection via quantitative easing for some time. Mervyn King, the governor, and Paul Fisher, another senior Bank official, have expressed sympathy for the argument for more QE, but have voted against it.

Appearing before the Treasury select committee yesterday, BofE deputy governor Paul Tucker suggested that a QE increase is not on his agenda. He said: “The threshold for me [for more stimulus] is high. This is not a committee that’s drifting towards thinking that more stimulus may be needed.”

Last month, the nine-member MPC was split 6-3 in favour of keeping rates at 0.5 per cent, with Sentance, Spencer Dale and Martin Weale all calling for an increase.