Bank of England unanimous on rate and QE program
The Bank of England’s monetary policy committee (MPC) voted unanimously to keep the base rate at 0.5 per cent and to maintain the size of the £375bn quantitative easing programme.
The minutes from the MPC’s August meeting show the decision to maintain the asset purchase programme was described as “relatively straightforward” for most members of the MPC, as it took stock of the impact of the funding for lending scheme (FLS).
“The FLS had the potential to improve funding conditions for banks materially and to encourage lending, thus providing some support to both demand and supply,” the minutes reveal.
“These effects might be particularly marked if the FLS allowed some households and companies to borrow who had previously been unable to obtain bank credit.”
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