Four Bank of England rate-setters voted for QE boost
Four members of the Bank of England’s rate-setting committee voted for an increase in quantitative easing (QE) at its most recent meeting.
Minutes from the June meeting show that Bank governor Mervyn King (pictured) along with committee members David Miles and Adam Posen voted for a £50bn increase in QE, while deputy governor Paul Tucker voted in favour of a £25bn increase.
Since the previous QE increase in February, David Miles has been the only Monetary Policy Committee (MPC) member to vote consistently for an increase in the stimulus programme.
Markets have increasingly been calling out for an expansion of the QE programme, after the UK officially returned to recession in the first quarter of this year.
But the nine-member panel voted against more QE overall because of “several key events” in the coming weeks regarding the situation in the eurozone, the minutes show. Members agreed that “there was merit in waiting to see how matters evolved” before reaching a decision on further stimulus.
The last time Mr Tucker and Mr King disagreed over MPC policy was in August 2009 when the governor was in the minority calling for a £75bn stimulus. QE at that time was increased by £50bn, Mr Tucker’s preferred option.
The MPC voted unanimously to hold rates - a position which may be challenged next month following yesterday’s (June 19) UK inflation figure which showed a further fall in the CPI measure of inflation to 2.8 per cent.