MPC still unanimous on bank rate but predicts more QE

The Bank of England's Monetary Policy Committee (MPC) once again voted unanimously to maintain interest rates at 0.5% and keep the quantitative easing (QE) programme at £275bn in January, despite fears inflation may fall below target levels.

Minutes of the MPC's most recent meeting showed no dissenting voices to the decisions, although, as in the previous meeting, there were strong suggestions of another round of QE. "For some members, the risks of undershooting the [inflation] target meant a further expansion of asset purchases was likely to be required," the minutes said. "Some of those members also noted a downside risk to inflation arising from the possibility that the reduction in the economy's supply potential following the recession had been less, and hence spare capacity greater, than assumed in the Inflation Repo...