• From The BBC:

    The Governor of the Bank of England, Mervyn King, wanted to pump more money into the UK economy this month but was outvoted by fellow policymakers.Minutes of the bank’s Monetary Policy Committee (MPC) meeting on 6 August reveal that Mr King wanted £75bn rather than the £50bn that was injected. Two fellow committee members also voted for a bigger cash injection. The decision to pump £50bn came as a surprise, and was already twice the £25bn that the market expected. The bank originally set aside £150bn for this policy, but the decision to inject an extra £50bn took the total to £175bn. The governor, backed by Tim Besley and David Miles, voted instead for a £75bn expansion. They argued that too little stimulation would mean inflation remaining below its target of 2% for “a sustained period of time… and might harm public confidence in the recovery, causing it to falter”. They added that if £75bn proved to be too much, they could rever…

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    Posted by Jon @ 11:12 am

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