Bank of England policymakers split on stimulus

LONDON — The likelihood that the Bank of England might approve more economic stimulus next month decreased on Wednesday as minutes from the latest policy meeting showed the rate-setters disagreed on the program’s effectiveness and official figures showed the unemployment rate has dropped. According to the minutes, the nine members of the Monetary Policy Committee agreed unanimously not to expand the program this month — as widely expected — because “there was little to be gained at this meeting in changing the current program.” But they were divided on the merits of increasing the stimulus in the future. The MPC has so far authorized £375 billion ($606 billion) to buy government bonds and other highquality assets. The latest authorization for 50 billion pounds is expected to be completed by the time of the November meeting, when many analysts expect a further expansion in the program, known as quantitative easing. The minutes, however, said the panel was divided on the likely impact of any further purchases. “It is a close call whether a majority votes for more QE next month,” said Vicky Redwood, chief U.K. economist at Capital Economics. “But the fact that at least some members are clearly convinced of the need to do more persuades us to stick with our forecast of a 50 billion pounds increase.” 英国央行决策者分裂的刺激 LONDON — The likelihood that the Bank of England might approve more economic stimulus next month decreased on Wednesday as minutes from the latest policy meeting showed the rate-setters disagreed on the program’s effectiveness and official figures showed the unemployment rate has dropped. According to the minutes, the nine members of the Monetary Policy Committee agreed unanimously not to expand the program this month — as widely expected — because “there was little to be gained at this meeting in changing the current program.” But they were divided on the merits of increasing the stimulus in the future. The MPC has so far authorized £375 billion ($606 billion) to buy government bonds and other highquality assets. The latest authorization for 50 billion pounds is expected to be completed by the time of the November meeting, when many analysts expect a further expansion in the program, known as quantitative easing. The minutes, however, said the panel was divided on the likely impact of any further purchases. “It is a close call whether a majority votes for more QE next month,” said Vicky Redwood, chief U.K. economist at Capital Economics. “But the fact that at least some members are clearly convinced of the need to do more persuades us to stick with our forecast of a 50 billion pounds increase.”

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