MPC

Bank of England governor Mervyn King has been asked by the Treasury Select Committee to explain his decision to inject a further £75m into the UK economy through quantitative easing (QE).

The Monetary Policy Committee(MPS) voted unanimously for an additional £75bn of quantitative easing at its latest meeting.

Speculation is mounting the Bank of England may be close to cutting base rates to 0.25% and pumping at least £50bn more into the economy through quantitative easing.

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.