TWO members of the UK Monetary Policy Committee voted for even-greater economic stimulus than that approved two weeks ago – when the scale of quantitative easing was increased by £50 billion to £325bn – it has emerged.
Minutes of the Bank of England committee's February 8 and 9 meeting, published yesterday, show that external MPC members Adam Posen and David Miles had preferred a £75bn hike in QE.
The minutes highlight a belief in this minority camp that there is a "risk of a prolonged period of depressed demand causing inflation to fall materially below the target in the medium term", and a worry that "persistently weak growth might impair the future supply capacity of the economy".
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