This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-23341728
The article has changed 4 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Bank of England voted 9-0 to keep QE on hold | Bank of England voted 9-0 to keep QE on hold |
| (about 1 hour later) | |
| Interest rate policy makers at the Bank of England voted 9-0 in favour of keeping the stimulus programme at its current level at their meeting earlier this month, minutes show. | Interest rate policy makers at the Bank of England voted 9-0 in favour of keeping the stimulus programme at its current level at their meeting earlier this month, minutes show. |
| The July meeting was the first to be chaired by new governor Mark Carney. | The July meeting was the first to be chaired by new governor Mark Carney. |
| Two members of the monetary policy committee (MPC) had voted to expand the quantitative easing programme at the previous meeting in June. | Two members of the monetary policy committee (MPC) had voted to expand the quantitative easing programme at the previous meeting in June. |
| However, some members said the case for more stimulus was "warranted". | However, some members said the case for more stimulus was "warranted". |
| Paul Fisher and David Miles had backed an extra £25bn of asset purchases in recent months, along with former governor Sir Mervyn King. | Paul Fisher and David Miles had backed an extra £25bn of asset purchases in recent months, along with former governor Sir Mervyn King. |
| But according to the minutes, the members who would have voted for more stimulus were prepared to wait while the committee explored other options over the next month. | |
| Quantitative easing is a bond buying programme designed to boost the economy. | Quantitative easing is a bond buying programme designed to boost the economy. |
| The last increase to the programme came in July 2012 when the MPC announced the purchase of £50bn worth of assets, which brought the total purchases to £375bn. | The last increase to the programme came in July 2012 when the MPC announced the purchase of £50bn worth of assets, which brought the total purchases to £375bn. |
| Forward guidance | |
| Vicky Redwood, chief UK economist at Capital Economics, said in a note: "Some members still think more stimulus is required and just wanted to wait for August's inflation report, when a range of policy options would be discussed. | |
| "Nonetheless, it perhaps looks as though a more formal form of forward guidance is as much as we will get next month." | |
| It is thought that Mr Carney favours forward guidance to boost confidence. The idea is that business and consumers will be more likely to borrow if they know that interest rates are going to remain low. | |
| The pound jumped against the dollar following the release of the minutes, and at one stage hit $1.5247 before dropping back slightly. | |
| The FTSE 100 index fell by 16 points after the minutes to trade at about 6,540. | |
| The MPC says there are signs that the economy is strengthening but the performance depends on consumer activity. | |
| "Growth in the second half of the year would depend in large part on the behaviour of the household sector." the minutes said. | |
| But it noted that income growth was "weak" and that could hold back spending. |