MPC uncertain over scale of asset purchases

The Monetary Policy Committee is still unsure as how to much money should be ploughed into its quantitative easing programme, minutes from the meeting reveal.

The minutes from this month’s gathering of the MPC members shows that there have been initial “encouraging” signs of success with the buy-up of assets so far.

But members remain unclear as to how much of the £150bn funding at their disposal they should spend on boosting the money supply.

The minutes say that “there remained a high degree of uncertainty over the appropriate scale of asset purchases necessary to keep inflation at target in the medium-term.”

But the statement adds: “The committee agreed that there had been no material change in the conditions that had led them to the decision last month on the necessary scale and timing of asset purchases that was required.”

The MPC voted unanimously both on holding the base rate at 0.5% and continuing with its asset purchase programme, otherwise known as quantitative easing.