Is more QE on the cards?

The idea of injecting a second round of QE into the UK economy may have seemed inconceivable a few months ago, but as the minutes of the July MPC meeting reveal, a new loosening programme is an acute possibility.

During the meeting, it was disclosed members had entertained another bout of loose monetary policy for the first time since February on fears growth could be hit by George Osborne’s emergency Budget. However, ONS data last week revealed UK growth rose unexpectedly by 1.1% during the second quarter, the fastest growth for four years. Some commentators believe this is a sign the country has averted a double-dip recession, while others warn this surprise surge is just an indication of a patchy recovery. Meanwhile across the Atlantic, the head of America’s central bank, Ben Bernanke, said...