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MPC members expect little impact from Autumn statement measures

Members of the Monetary Policy Committee have said the fiscal policy measures announced by the Chancellor in the Autumn Statement are only likely to have a small impact.

Minutes from the meeting on the 5 and 6 December show MPC members to have judged the measures to have little potential impact on growth over the committee’s two-year forecast horizon.

The minutes say: “The Committee noted the fiscal policy measures announced by the Chancellor in the Autumn Statement. Preliminary analysis had suggested that their impact on the outlook for growth over the Committee’s forecast horizon was likely to be small.”

The underlying state of the UK economy is difficult to judge, given the influence of temporary factors such as the boost delivered by the Olympics, according to the Committee.

MPC member David Miles reiterated his call to increase the size of the asset purchase programme by a further £25bn in December.

Miles again voted in favour of increasing the programme to £400bn while the eight remaining members judged the current £375bn programme to be sufficient.

All nine members voted unanimously to maintain the base rate at 0.5 per cent.

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