Bank of England’s MPC votes no on more quantitative easing

The Bank of England’s Monetary Policy Committee recently made the decision to hold off on any more quantitative easing for the time being, industry experts recently reported, as all but one committee member voted against further asset purchase.

Only one out of the nine MPC members, David Miles, spoke out in favour of an additional round of quantitative easing in order to encourage UK economic growth.  QE, which is essentially printing  money, has already been used to infuse £325 billion into the British economy, but the majority of committee members decided against expanding the asset purchase programme – though Charlie Bean, the Bank’s deputy governor, indicated that further economic decline could trigger an additional round this coming summer.

Unsurprisingly the MPC voted unanimously to hold the nation’s base interest rates at 0.5 per cent for the country.  With the nation’s inflation rate finally dropping to 3 per cent, which is only 1 percentage point above the Bank’s target rate of 2 per cent, the BoE has finally been able to begin fending off detractors that have been critical of the MPC’s decision to keep interest rates so low for so long, as this has had a negative effect on the rates associated with savings accounts in the UK.

Still, pressure is mounting against the Bank, this time from the International Monetary Fund, to cut rates down even lower and implement additional QE to combat the currently nightmarish situations in the eurozone and in light of the economic crisis gripping Greece.  The IMF had concerns that a double-dip recession has reared its ugly head in the UK, even as it acknowledged that the country has made some progress in reducing budget deficits.

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