The Monetary Policy Committee (MPC) of the Bank of England (BoE) was split again over the issue of stimulus, according to the minutes of its last meeting on March 7 and 8. Adam Posen and David Miles came down in favor of boosting stimulus, while the other seven members opted for a wait-and-see stance.
Bloomberg reported that in the minutes of the meeting, published Wednesday, Posen and Miles wanted to increase the target for bond purchases by 25 billion pounds ($40 billion) to 350 billion pounds. But they were outvoted, and the total was kept at 325 billion pounds.
Disagreement among MPC members has centered on the issues of consumer prices and the need for additional stimulus. While Martin Weale has said there is “risk that there may be more persistence to inflation,” Spencer Dale, the chief economist, said Tuesday that inflation could take longer to slow than the MPC originally believed because of increases in energy prices.