MPC member Martin Weale says case for more QE “stronger”

Bank of England monetary policy committee member Martin Weale says the argument for extending the Bank’s quantitative easing programme has strengthened after the economy slipped back into recession.

Figures from the Office for National Statistics, published earlier this week, shows the UK economy shrank by 0.2 per cent in the first quarter of 2012 following a fall of 0.3 per cent the quarter before.

The QE programme currently stands at £325bn and the latest round of £50bn is expected to complete this month.

Minutes from this month’s MPC meeting show David Miles was the only member to vote for an expansion of monetary policy after fellow MPC member Adam Posen, who has consistently argued for an expansion, voted to keep the size of the programme the same.

Speaking to BBC Radio Newcastle yesterday, Weale said the case for increasing QE had strengthened after news that the country had entered its first double-dip recession since 1975.

He said: “I am certainly feeling that the argument is stronger than it would have been if the economy had shown economic growth. I do not want to come to a decision now. It is a decision I will come to.”

Weale added he “could not imagine than an increase in interest rates would provide support to the economy” and that QE is the only policy open to the committee.


Pension fund FTT carve out ‘unlikely’, says MEP

MEPs are unlikely to back proposals for pension fund carve-outs from any financial transaction tax at a vote on Wednesday, according to Conservative MEP Kay Swinburne. In September the European Commission proposed an FTT which would see a 0.1 per cent charge on stock and bond trading and 0.01 per cent on derivatives contracts. Politicians […]

UK dividends reach record highs in Q1

UK dividends hit record levels in the first quarter as payouts increased by 25 per cent to £18.8 billion, according to the latest UK Dividend Monitor by Capita Registrars. This record figure was boosted by a number of special dividends, including £2.2bn from both Cairn Energy and Vodafone. Forecast dividends for the year have been […]

Investec launches diversified growth fund ahead of RDR

Investec has launched a diversified growth fund, managed by Philip Saunders, as part of its creation of a new range of risk-rated funds ahead of the RDR. The Investec managed solutions range is made up of four funds. Alongside the newly launched Investec diversified growth fund sits Alastair Mundy’s £2.2 billion cautious managed fund, and […]

PPI: Govt reforms could hit people with health issues

Syndaxi Chartered Financial Planners managing director Robert Reid (pictured) says: “The impact of health issues is something the Government needs to recognise in its future policies.” The report also says 45 per cent of today’s over 50s may have to work and save for 11 years or more beyond their state pension age if they […]

Lifetime ISAs – International Evidence

By Fiona Tait, Pensions Specialist Since the announcement in March, the Lifetime ISA (LISA) has attracted controversy. Heralded as a saviour for the self-employed and the young wanting to get on the housing ladder, the new LISA risks adding confusion for savers trying to fully understand the benefits of new workplace pension savings through auto-enrolment. To […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm