Mervyn King said the U.K.'s economy might contract even more in the fourth quarter, as recovery is slowing down. That caused the officials to think on expanding asset purchases to accelerate the pace of growth, even though the bond purchase program was contained, as officials did not see it reflecting in the nation's economy. The Bank of England estimates quarterly GDP to grow around 2% in the next two years, and the inflation to be at 1.9% by the end of its forecast period.
"There are limits to the ability of domestic policy to stimulate private-sector demand as the economy adjusts to a new equilibrium. But the committee has not lost faith in asset purchases as a policy instrument, nor has it concluded that there will be no more purchases," King said in his press conference.