Capital Economics: Bank’s QE programme to reach £500bn; rate cut in November

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The Bank of England’s quantitative easing programme – the asset purchase scheme – will ultimately hit £500bn, according to research consultancy Capital Economics.

UK economist Martin Beck says it is expecting a further £50bn boost at the Bank of England’s November Monetary Policy Committee meeting as well as a further cut to interest rates.

He says: “September’s Monetary Policy Committee minutes did little to diminish the prospects of further policy stimulus over the coming months.

“We continue to expect further asset purchases to be announced at November’s meeting.”

Beck says unanimous votes on leaving the base rate and the level of quantitative easing unchanged at the September meeting of the Monetary Policy Committee was to be expected.

He adds: “This was always likely given that the latest round of asset purchases will not be completed until November.

“While for most of the Committee, the decision to stay the course was ‘straightforward’, one member (probably David Miles) thought a good case could be made for more asset purchases to be announced at September’s meeting.”