MPC

F&C's Ted Scott has called on the Monetary Policy Committee (MPC) to abandon plans for QE2 and buoy the economy using fiscal measures.

The case for further QE in the UK "significantly strengthened" in the past month, with any repeat of recent economic woes likely to lead to further stimulus, the MPC has said.

Adam Posen, the external member of the Bank of England's Monetary Policy Committee (MPC), has upped his call for more quantitative easing (QE) to £100bn and proposed a ‘public bank' for businesses struggling to find credit on the highstreet.

The immediate future of the UK economy will not be dependant on a further round of quantitative easing (QE), a member of the Bank of England's rate setting body said yesterday.

Sterling dropped against the dollar after the latest MPC minutes revealed no calls for a UK rate hike and opened the door to further QE.

Sterling was weaker against other major currencies after the Bank of England cut its growth forecast for this year.

The Bank's decision to maintain interest rates splits opinion among economists.

There are clear signs of a rift within the MPC over interest rates as deputy governor Paul Tucker said he is close to voting for a rise.

ON BONDS

Managers have been buying gilts in the view interest rates will stay lower for longer as the MPC revealed last week it considered a second round of QE in its June meeting.