Last month, the Bank of England’s Monetary Policy Committee (MPC) came close to increasing the quantitative easing programmes, as four of the nine strong committee, – including the banks governor Sir Mervyn King, – voted in favour of additional stimulus.
Now, it is believed that on Thursday, as the bank announces the outcome of its latest monthly meeting, they will also announce a further £50 billion increase in the quantitative easing programme, taking the figure to £375 billion.
Speculation that the Bank of England are to increase the quantitative easing programme has been growing over recent weeks, as the bank and Treasury launching a number of schemes to kick-start lending; including the bank – late last week – calling for rules to be relaxed to free up billions of pounds which are currently being held in “liquidity buffers.”
One economist has said on the mounting speculation that the quantitative easing programme is set to be increased: “The MPC were on the brink of approving more quantitative easing at their June meeting.
“With latest economic data and surveys largely grim, the outlook uncertain and troubling, the Eurozone crisis continuing and latest inflation developments largely favourable, we believe that a majority of MPC members will decide that more quantitative easing is now warranted and justifiable.”
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