MPs are calling for an inquiry into the government’s quantitive easing programme amid concerns it has done more harm than good to the UK economy, according to the Guardian.
Treasury select committee chairman Andrew Tyrie told the paper action must be taken as “some people may be worse off as a result” of the asset purchase programme.
The Guardian says Conservative MP Andrea Leadsom is spearheading the pressure for an inquiry.
There are mounting concerns over the effects QE could have on long-term inflation and the impact of low interest rates on both savers and pensioners.
The Bank of England’s Monetary Policy Committee authorised the purchase of £200bn in assets, largely gilts between March and November 2009. A further £75bn was authorised in October 2011, followed by a further commitment of £50bn in February. The fourth tranche of the programme to date was confirmed in July when an additional £50bn brought the total asset purchases to £375bn.
The MPC elected to once again hold the base rate at 0.5 per cent earlier this month and continue with the asset purchase programme at £375bn. The committee says the programme will take another month to complete, signalling the possibility of further quantitative easing later this year.