BoE Minutes: MPC members divided over impact of further stimulus (Barcelona) - BoE Minutes from the MPC monetary policy meeting held on 3 and 4 October and released today reveal that the Committee voted unanimously in favor of maintaining the interest rate at 0.5% as well as in favor of the proposition to continue with the program of asset purchases totaling £375 billion.

According to the minutes, the BoE policy makers agreed that not much would be gained from an expansion of the asset purchase program in October. MPC members were divided as far as the impact of a further increase in stimulus is concerned: some believed it would effectively boost the economy while others saw it only lowering long-term yields, without much positive influence.

Vicky Redwood, Chief UK Economist for Capital Economics comments: “It is a close call whether a majority votes for more QE next month. But the fact that at least some members are clearly convinced of the need to do more persuades us to stick with our forecast of a £50bn increase (though a rate cut seems unlikely for now).”