Bank of England split over rates

Nia Williams

November 17, 2010

As predicted there was no change in rates but, while seven members voted for no change to interest rates and no additional stimulus spending, Andrew Sentance once again called for rates to 0.75%. Also, Adam Posen voted in favour of £50 billion of additional quantitative easing.

The minutes state: “The Governor invited the Committee to vote on the proposition that: Bank Rate should be maintained at 0.5%; the Bank of England should maintain the stock of asset purchases financed by the issuance of central bank reserves at £200 billion.

“Seven members of the Committee (the Governor, Charles Bean, Paul Tucker, Spencer Dale, Paul Fisher, David Miles and Martin Weale) voted in favour of the proposition. Two members of the Committee voted against the proposition.

“Adam Posen preferred to maintain Bank Rate at 0.5% and increase the size of the asset purchase programme by £50 billion to a total of £250 billion.

“Andrew Sentance preferred to increase Bank Rate by 25 basis points and to maintain the size of the asset purchase programme at £200 billion.”

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