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MPC minutes show committee remains split over QE


The Bank of England’s Monetary Policy Committee remains split over increasing its programme of quantitative easing, with the same three members voting to increase it by £25bn.

The minutes from May’s MPC meeting show BoE governor Mervyn King, Paul Fisher and David Miles voted to increase QE by £375bn to £400bn earlier this month, the same three who voted for an increase at April’s meeting. The other six MPC members voted to keep QE at its current level.

All members voted to keep base rate at a record-low 0.5 per cent, the level at which it has been since March 2009. The BoE started its programme of QE on the same day and the last time it was increased was on 5 July, when the MPC voted to increase it by £50bn to £375bn.

Those arguing to keep QE at its current level argued that with better-than-expected growth in the first quarter, the extension of the Funding for Lending scheme and the effects of the last round of QE still being seen, an extension was not necessary at this time.

Those arguing to boost the size of the programme decided that more QE was necessary to address the slack in the labour market and to increase supply and demand.


Paul Howard joins Castle Trust

Former Nationwide head of corporate accounts Paul Howard has joined Castle Trust as managing director for mortgages. Howard left Nationwide at the end of 2011 as a result of a management reshuffle and has been an industry consultant since. He says: “Castle Trust’s partnership mortgage is the most innovative concept to surface in the market for […]

FCA fines JP Morgan International Bank £3.1m for wealth management failings

The Financial Conduct Authority has fined JP Morgan International Bank £3,076,200 for systems and controls failings relating to its retail investment advice and portfolio investment services. The fine follows the regulator’s thematic review into wealth management firms and the suitability of their advice. JP Morgan is now carrying out a past business review to assess […]

Cost of 95% LTV mortgages on the rise

The cost of 95 per cent loan-to-value two-year fixed products has risen over the last 18 months despite Government attempts to boost lending to those with small deposits. Figures from Moneyfacts show borrowers with a 5 per cent deposit are paying 14 basis points more today for a 95 per cent LTV two-year fixed rate on […]


Linda Smith: RMAR reporting is getting more complex

Last summer we alerted members to the introduction of two new sections of the RMAR that would become effective once the RDR had been implemented. If there were to be any problems with the new reporting system, we expected them to become evident in a couple of months’ time when firms began reporting this new […]

A tough start for 2017 consensus trades

By Kacper Brzezniak Every year, starting around November, investment banks (and fund managers) begin to drip out their outlooks for currencies, rates, economies, you name it, for the following year. The consensus has been largely wrong for the past four or five years; those multiple rate hikes never came, the bond market is still alive […]


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