Bank of England decision to hold rates and QE was unanimous

The Bank of England has revealed all members of the Monetary Policy Committee agreed not to increase its monetary stimulus in spite of global market volatility.

“Although the US government shutdown and concerns over the debt ceiling had appeared to have only limited effects on broader financial markets....yields on US Treasury bills maturing in late October had risen to nearly 30 basis points, from around 2 basis points at the end of September,” the committee said in the minutes from their meeting on October 8 and 9.

But the MPC, headed by Bank of England governor Mark Carney, added that “The news on the month had continued to suggest a robust recovery in activity in the United Kingdom. Monetary stimulus remained considerable and confidence appeared to be rising.”

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This recovery was not enough, however, for joblessness to fall significantly, which meant the Bank’s forward guidance - that rates will not rise until unemployment falls to 7 per cent - remained intact, with the bank rate left at a historically low 0.5 per cent.

Asset purchases were also left constant at £375bn as output was expanding at least as fast as expected, meaning “there was currently little case for increasing the degree of monetary stimulus further”.