More quantitative easing splits Monetary Policy Committee

Four members of the Monetary Policy Committee voted in favour of more quantitative easing, according to the minutes of its last meeting.

The Governor Mervyn King, David Miles and Adam Posen wanted to increase the size of the asset purchase programme by £50 billion to a total of £375 billion.

Paul Fisher preferred an increase of £25 billion taking the total to £350 billion.

Five members of the Committee voted for no increase.

In addition, members of the Committee voted unanimously to keep Bank Rate at 0.5 per cent. They discussed lowering Base Rate but felt there would not be any advantages doing this over an expansion of the asset purchase programme. But the MPC will keep the position under review.