MPC votes for more QE
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The Bank of England’s Monetary Policy Committee has voted for more quantitative easing at its February meeting.
The committee has increased the size of its asset purchase programme by £50bn, taking it to a total of £325bn.
It has also voted to keep the base rate on hold at its historic low of 0.5%.
The MPC last increased its QE programme in October 2011, by £75bn to £275bn.
Ben Thompson, managing director of Legal & General Mortgage Club, says the move may be questioned by some in light of the more positive economic news that has begun to appear in recent weeks.
But he says: “However, with the Bank having signalled its intent a while ago, the consensus is likely to be that ploughing on as planned was the right thing to do, especially with reduced inflation and a small drop in GDP in Q4 2011.
“Now is not the time to take any chances, and ensuring every possible step is taken to get positive growth back for the UK has to be the right thing.
“So far as the housing market in concerned, the hope has to be that this leads to steady and positive house price growth in the future, thereby helping the frozen housing market to thaw.”
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