ECONOMISTS believe the chances of further monetary stimulus for the struggling UK economy before the year-end have fallen.
And only two of 60 economists polled this week by news agency Reuters believed the Bank of England would provide further stimulus when incoming Bank Governor Mark Carney chairs his first meeting of the nine-strong Monetary Policy Committee on July 3 and 4.
The poll, published yesterday, showed the median probability attached by economists to further quantitative easing by the year-end is 40%. This is down from 45% in a June 12 poll, and 48% in a survey at the end of May.
The two economists forecasting a move on monetary policy at Mr Carney's first meeting predicted the MPC would increase the quantitative easing (QE) programme by £25 billion to £400bn next week.
QE is aimed at stimulating activity by boosting money supply through the purchase of Government and corporate bonds, using central bank reserves.
Although UK economic indicators have been slightly firmer in recent weeks, outgoing Bank Governor Sir Mervyn King pushed unsuccessfully again at the MPC's June meeting for a £25bn boost to QE, with fellow committee members Paul Fisher and David Miles.
Detailing the rationale of those voting for a rise in QE, the minutes of this meeting stated: "The news on activity on the month had been reassuring but the outlook was no stronger than had been incorporated into the May inflation report projections."
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