BoE minutes reveal three-way split

| October 20, 2010 | 0 Comments

Minutes of the Bank of England’s October meeting have been released today and have revealed that the Monetary Policy Committee (MPC) were split three ways.

Adam Posen called for an injection of £50 billion via its quantitative easing (QE) programme to boost the economy.

For the fifth consecutive month, policymaker Andrew Sentance voted for interest rates to be lifted from 0.5% to 0.75% to combat stubbornly high CPI inflation.

The CPI inflation rate is a benchmark for the MPC but the Committee continues to keep UK interest rates on hold and Mr Sentance has already questioned how long interest rates can remain at their historically low level.

Meanwhile, the minutes said that several policymakers believe that more stimulus is required “but for them, the evidence was not sufficiently compelling to imply that such a course of action was necessary at present.”

While the minutes hint that the QE programme could be extended next month, many economists still believe that monetary policy will remain on hold for the short-term.

The next MPC meeting is scheduled for 3-4 November.

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