BoE Minutes: MPC Voted 6-3 To Increase Asset Purchase Programme By GBP 50 Bln

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Wednesday, the minutes of the Bank of England showed that six members of the Monetary Policy Committee voted to raise the size of asset purchases by GBP 50 billion. While, other three members sought a GBP 75 billion increase to GBP 200 billion.

The meeting was held on August 5 and 6. The central bank held the key interest rate unchanged at 0.5% in this meeting.

Governor Mervyn King, Tim Besley and David Miles were the three members who preferred a larger increase in asset purchase programme.

The MPC agreed to spread the additional purchases of GBP 50 billion evenly over three months so that their completion would coincide with the preparation of the November Inflation Report projections.

The minutes revealed that assuming that Bank Rate followed the path implied by prevailing market yields, a larger increase in the scale of the asset purchase programme was likely to be necessary to counterbalance the risk that inflation would fall short of the target.

Wednesday, the minutes of the Bank of England showed that six members of the Monetary Policy Committee voted to raise the size of asset purchases by GBP 50 billion. (Market News Provided by RTTNews)