MPC poised to inject more QE into economy

The Bank of England yesterday dropped its biggest hint yet that it is preparing to pump billions more into the UK's struggling economic recovery.

Minutes of the Monetary Policy Committee's latest meeting showed a unanimous vote to hold fire on further money printing after expanding its quantitative easing programme by £50bn in July.

But the dovish tone of the MPC's deliberations caught some analysts off guard as the minutes revealed "some members", Bank code for a minority on the nine-strong committee, saying there was a "good case" for further action this month.

Despite yesterday's rise in inflation to 2.6 per cent, the Bank's latest forecasts show the cost of living dipping under its 2 per cent target in two years' time.