The minutes of the Bank of England’s MPC meeting, at which the decision was taken to freeze the base rate at its all-time low of 0.5 per cent, show that members pondered extending the quantiative easing programme by the maximum £75bn.
The MPC eventually settled on a £50bn extension to its asset purchase scheme, bringing its total to £125bn.
The minutes said: “For some members, the economic outlook warranted an increase in the size of the programme of £50bn. For other members, a case could be made for the larger stimulus. But as the precise amount that would ultimately be required was so uncertain, there was no pressing need for the larger extension at this meeting.”
The MPC says the programme will be reviewed every month, with a view that the amount of assets purchased could then be increased or decreased in light of the MPC’s assessment of economic developments.