Quantitive easing debate to heighten
The stage is set for even more fierce debate over the recovery's health this week amid increasingly public splits among the Bank of England's rate-setters over whether to pump more cash into the economy.
This week's meeting marks the third anniversary of interest rates reaching their all-time low of 0.5 per cent and the start of the Bank's quantitative easing programme to kick-start growth.
The Bank sanctioned a further £50bn of QE last month – taking the total to £325bn – to spur on an economy sapped by the eurozone debt crisis. The Bank's nine-strong Monetary Policy Committee was unanimous over the need to restart QE last October, but the MPC's hawks are increasingly nervous about the threat of inflation as oil prices spike.
Martin Weale, an MPC member who voted for interest rate rises last year, voiced fears over "persistent" inflation this week and called for QE to be wrapped up when the current programme ends in May.
But committee doves Adam Posen and David Miles called for the Bank to go further with £75bn last month, amid fears that the damage wrought by the recession was so severe that it has permanently impaired the economy's ability to grow. Minutes of the meeting, published in two weeks' time, will be scoured for hints on who is gaining the upper hand.
Bosses of collapsed banks should be sent to jail, George Osborne told
Feat of engineering: Incredible photographs show construction beneath New York's Second Avenue
Brazil kicks off: World Cup excess draws hundreds of thousands to street protests
World news in pictures
Google challenges US surveillance gagging order
- 1 Diary of Second World War German teenager reveals young lives untroubled by Nazi Holocaust in wartime Berlin
- 2 Breaking the Silence: In the reality of occupation, there are no Palestinian civilians – only potential terrorists
- 3 Uri Geller psychic spy? The spoon-bender's secret life as a Mossad and CIA agent revealed
- 4 Viral video straps colt .45 handgun to a home-use drone
- 5 Vice pulls 'breathtakingly tasteless' fashion shoot glorifying the suicides of famous female authors from Sylvia Plath to Virginia Woolf
iJobs Money & Business
£65000 - £85000 Per Annum: The Green Recruitment Company: The Green Recruitmen...
£400 per day: Orgtel: A top tier banking client urgently requires a Senior Bus...
£250 - £350 per day: Orgtel: Financial Crime Analyst,Midlands, Banking, AML/Sa...
£20,000 - £45,000 OTE: Co-Venture: Working for this company will give you a ch...