Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/wealth-manager/article/a636080
King & Co split over impact of more QE
by Sarah Miloudi on Nov 21, 2012 at 10:44
Bank of England rate setters are divided over the impact of more quantitative easing (QE).
The latest minutes from the Bank's monetary policy committee (MPC) meeting revealed a split among the UK's key policy makers over the benefits of extending the £375 billion programme.
Before the minutes were released it was thought the MPC would be swayed by the Bank's agreement to return some £35 billion generated through the scheme to the finance ministry.
The vote between members was also expected to be tight. In fact, only one member was in favour of adding to QE.
'Views differed over the exact impact of the MPC's asset purchases, the committee agreed demand and output would have been significantly weaker in their absence,' members said, however the minutes revealed the group placed different emphasis on each of the arguments in favour of more QE.
This persuaded Mervyn King (pictured), Charles Bean, Paul Tucker, Ben Broadbent, Spencer Dale, Paul Fisher, Ian McCafferty and Martin Weale to vote in favour of holding asset purchases constant.
David Miles wanted to extend the programme by £25 billion, taking it to £400 billion.
News sponsored by:
Subscribe to Wealth Manager to get the inside track on your rivals' moves
Keep up to date with how your peers are allocating their clients' assets by subscribing to Wealth Manager magazine.
Today's top headlines
More about this:
More from us
Aberdeen Live supplement: Fundamentals point to ongoing flows and solid returns from EMD
After a record year for inflows and market-leading performance in 2012, emerging market debt has taken a large step towards the mainstream. Our recent debate covers the outlook for the asset class this year and where opportunities can be found.