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MPC split over further quantitative easing

MPC split over further quantitative easing

Category: Banking

Updated: 22/05/2013
First Published: 22/05/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The Bank of England's Monetary Policy Committee (MPC) remained divided earlier this month as to whether more money should be injected into the UK's economy via the Government's quantitative easing (QE) programme.

According to minutes released from the MPC's meeting on 8 and 9 May, three members of the committee voted to increase the overall amount to £400 billion.

The first instalment of QE occurred in March 2009, with the total amount remaining at £375 billion since July 2012 after a further £50 billion was added by the Government.

The committee has been split over the past few months with regard to whether an additional £25 billion should be purchased by the Government. Three members of the MPC; the Governor of the Bank of England Sir Mervyn King, the Bank of England's Executive Director for Markets, Paul Fisher, and David Miles, a professor at Imperial College, London, have all voted in favour of further QE.

Minutes from the meeting also revealed that the MPC voted unanimously to keep interest rates at 0.50% for the 50th consecutive month.

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