MPC split 7-2 on quantitative easing

Note: This section contains information in English only.
Source: Dukascopy Bank
"Recent data on the domestic and international economies had on balance been more positive than might have been anticipated towards the end of 2011"
- Monetary Policy Committee members

Monetary Policy Committee members were split over the size of their latest economic stimulus, showed the minutes of the February 8-9 meeting published on Wednesday.

David Miles together with Adam Posen proposed to boost asset purchases by 75 billion pounds, as the remaining seven monetary policy committee members voted for a 50 billion pounds increase in quantitative easing.

They argued a larger increase "risked sending a signal that the committee thought the economic situation was weaker than it was."

"Recent data on the domestic and international economies had on balance been more positive than might have been anticipated towards the end of 2011, pointing to the possibility that growth might be stronger than expected in the near term," the majority argued, according to the minutes.

© Dukascopy Bank

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