MPC members split in November

The Bank of England’s Monetary Policy Committee was split three ways in November with one member voting for an interest rate rise and another to increase Quantitative Easing.

mervyn_king.jpg

The latest MPC minutes show seven members of the committee, Mervyn King, Charles Bean, Paul Tucker, Spencer Dale, Paul Fisher, David Miles and Martin Weale all voted to keep interest rates and QE on hold.

But Adam Posen preferred to maintain Bank Rate at 0.5% and increase the size of the asset purchase programme by £50bn to a total of £250bn.

Jonathan Loynes, chief european economist at Capital Economics, says as expected, the voting pattern was unaltered.

But he says: “There were few signs that the rest of the committee is moving quickly in one direction or another.

“Most members still expect inflation to fall back to target in the medium-term, but feel that it would be premature to loosen policy without clearer signs of a slowdown in growth.

“If we are right in expecting those signs to materialise over the coming months, more QE may yet arrive in February.”