Bank of England rejects more quantitative easing
The Bank of England yesterday risked accusations that it was failing to do enough to jump-start the ailing economy as it declined to resume its monetary stimulus programme.
The rate-setting Monetary Policy Committee (MPC) voted against increasing the size of the Bank's £325bn asset purchase scheme, known as quantitative easing, despite the economy falling into its first double-dip recession since the 1970s.
"It's a little bit disappointing," said Philip Shaw of Investec. "The MPC must either be feeling more optimistic over the economy than most observers, or be seriously concerned that inflation will remain above target in the medium term."
Last month the Office for National Statistics estimated that the economy shrank by 0.2 per cent in the first quarter of this year, following a contraction of 0.3 per cent in the final three months of 2011. The MPC, in the minutes of its most recent meeting, said the economy was probably experiencing a healthier level of underlying growth than the official figures have been showing.
- 1 Cyclist in Russia narrowly misses being hit by car and lorry
- 2 'F*ck it, I quit': KTVA reporter Charlo Greene quits live on air in spectacular fashion
- 3 What are your fingerprint words?
- 4 Gary Lineker involved in Twitter row after presenter rubbishes claims he will be warned by BBC over foul-mouthed tweets
- 5 Pink Floyd new album: Band unveil cover art for first record in 20 years
Rihanna 'nude pictures' claims emerge on 4Chan as hacking scandal continues
Slough train station deaths: Woman and child killed after being 'pushed in front of train'
Kim Kardashian 'nude photos' leaked on 4chan weeks after Jennifer Lawrence scandal
'F*ck it, I quit': KTVA reporter Charlo Greene quits live on air in spectacular fashion
Jennifer Lawrence: Leaked 4Chan sex video branded 'fake' by users
Scotland could still declare independence – even without referendum, says Alex Salmond
Scottish referendum results: Cross-party consensus collapses amid Tory-Labour spat on the 'English question'
Hilary Mantel 'should be investigated by police' over Margaret Thatcher assassination story, says Lord Bell
Plebgate MP Andrew Mitchell called officer a 'little s**t', claim court documents 'exposing ex-Chief Whip's 'record of abusing police'
Archbishop of Canterbury admits doubts about existence of God
Labour Party conference: Ed Balls to set out plan to freeze child benefit to balance books
iJobs Money & Business
£65000 Per Annum Benefits + bonus: Clearwater People Solutions Ltd: If you are...
£20000 - £25000 per annum + OTE £40,000: SThree: SThree are a global FTSE 250 ...
£20000 - £25000 per annum + OTE £40000: SThree: As a Recruitment Consultant, y...
£20000 - £25000 per annum + OTE £40,000: SThree: SThree Group have been well e...