Bank of England's Monetary Policy Committee (MPC) decided to maintain the size of the asset purchase programme at GBP 325 billion through a split vote as one member called for an increase in stimulus, the minutes of the meeting showed Wednesday.
Eight members of the MPC, including Governor Mervyn King voted to retain quantitative easing at GBP 325 billion. "For most members, there was no sufficient reason to change either Bank Rate or the quantity of asset purchases agreed at the Committee's February meeting," the minutes showed.
David Miles sought an increase in the asset purchase programme by GBP 25 billion to a total of GBP 350 billion. According to him, the balance of risks continued to warrant an expansion of the asset purchase programme this month, although the decision was finely balanced.
At the same time, the committee voted unanimously to maintain the interest rate at a historic low of 0.50 percent.
by RTT Staff Writer
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