By Marcus Leach
Minutes from the Bank of England's last meeting show that the Monetary Policy Committee (MPC) voted unanimously for the recent quantitive easing to help boost the flagging economy.
Minutes from the MPC's meeting show that members considered injecting between £50 billion and £100 billion, before settling on £75 billion.
The deterioration in the international outlook was cited as a key factor in their decision, and it marked a swift turnaround in opinion.
At the previous meeting in September only one MPC member, Adam Posen, had pushed for more quantitive easing.
All members voted to keep interest rates unchanged at their record low of 0.5%, despite inflation running well above the 2% target rate.
Jeremy Cook, Chief Economist at foreign exchange company, World First, said the minutes show that the Bank of England are seriously concerned about the Eurozone crisis.
“Nothing that we didn’t know already, but these minutes show us how scared the Bank of England is of the European crisis getting further out of control," he said.
“Inflation is running at very high levels at the moment and they have still decided, unanimously, to increase asset purchases.
“It seems that the MPC are taking a more proactive stance to the problems of liquidity and sovereign debt than a reactive one but we will have to wait months before we know how well.”
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