Bank split on increasing QE, minutes reveal

The Bank of England’s Monetary Policy Committee (MPC) was split over increasing quantitative easing by £25 billion at its March meeting.

MPC members David Miles and Adam Posen voted to increase the size of the asset purchase programme to £350 billion.

The minutes reveal: “Two members continued to think that a larger monetary stimulus was warranted to reduce the risk that persistently weak growth would damage the future supply capacity of the economy.

“In their view, policy should be loosened further to stimulate demand quickly, but the stimulus could then be withdrawn were it to become clear that there was a significant risk of inflation rising above target in the medium term.”

The decision to hold rates at 0.5% was unanimous.