LONDON (dpa-AFX) - Corrects 'year' to 'month' in the first sentence of the article
Bank of England policymakers raised the size of economic stimulus by GBP 50 billion this month through a split vote as Spencer Dale and Ben Broadbent voted to retain it at GBP 325 billion, the minutes of the meeting revealed Wednesday.
At the meeting held on July 4 and 5, seven members of the Monetary Policy Committee including Governor Mervyn King sought an increase in quantitative easing to GBP 375 billion. All nine of the members voted to hold the interest rate at a record low 0.50 percent.
'On balance, and in light of the potential stimulus provided by the other recent and prospective policy initiatives, these members judged that an additional GBP 50 billion of asset purchases was appropriate at this meeting in order to balance the risks to inflation around the 2% target in the medium term,' the minutes showed.
The minutes revealed that the committee is likely to examine the case for a reduction in bank rate below 0.5 percent after taking into account the impact of policy initiatives.
Copyright RTT News/dpa-AFX