By Marcus Leach
Minutes from the Bank of England's policy-setting committee have shown that it was a unanimous decision to maintain interest levels at 0.5%, as well as refraining from adding to the quantitative easing programme.
Whilst the minutes showed all were in agreement at keeping QE at £375 billion, they also showed some members agreed more stimulus would be required in the future.
"There were some differences of view between members about the outlook and the likelihood that further easing in policy would be required," the minutes said.
"But there was agreement that there was little to be gained at this meeting in changing the current programme of asset purchases," the minutes said, referring to quantitative easing, in which it tries to stimulate the economy by buying up government bonds.
"The Committee would have the opportunity to gauge the impact of past and prospective policy actions at home and abroad over the next month, in the context of preparing its forecasts for the November Inflation Report."
Richard Driver, of Caxton FX, said he was surprised that there was no vote in favour of a rate cut.
“The minutes reveal that there are differing views within the MPC, with several members in favour of more QE in November, while others doubt the need and the usefulness of more easing," he said.
"The absence of any votes in favour of a rate cut comes as little surprise. It was encouraging to see that the MPC remains confident that activity will pick-up, albeit later than anticipated in the August Inflation Report.
"Based on these minutes, it seems unlikely that the MPC doves will be able to form a majority in favour of QE in November. Martin Weale’s reservations over whether more QE is in line with the Bank’s inflation target could well convince some of the fence-sitters to hold fire on QE, as could the early indications that the Funding for Lending Scheme is stimulating credit conditions. Next week’s UK GDP figure could well have the final say for several voters."
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