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19/08/2009
Bank Split Over 'Quantitative Easing'
It has emerged that there was high level disagreement over the amount of money used to bolster-up the UK's economy earlier this month.
Bank of England Governor Mervyn King and two other members of the influential Monetary Policy Committee (MPC) had wanted to pump a total of £75 billion into the UK economy, instead of the £50 billion agreed, it has been revealed.
The 6 - 3 split over the latest 'quantitative easing programme' was revealed in the minutes of the MPC meeting on August 6, which were published today.
Tim Besley and David Miles also voted in favour of the larger cash boost.
Peter Dixon, an economist at Commerzbank, said that decision "clearly suggests that the Bank is leaving the door open for additional measures", adding that additional quantitative easing is "still very much in play".
The minutes of the meeting also revealed that all MPC members voted in favour of interest rates remaining at 0.5%.
Quantitative easing is sometimes described as 'printing money', although the central bank actually creates it electronically by increasing the credit in its own bank account.
It is used to stimulate an economy where interest rates are either at, or close to, zero.
Normally, a central bank stimulates the economy indirectly by lowering interest rates but when it cannot lower them any further it can attempt to 'seed' the financial system with new money through what is know as quantitative easing.
See: No Change For Interest Rate
(KMcA/BMcC)
Bank of England Governor Mervyn King and two other members of the influential Monetary Policy Committee (MPC) had wanted to pump a total of £75 billion into the UK economy, instead of the £50 billion agreed, it has been revealed.
The 6 - 3 split over the latest 'quantitative easing programme' was revealed in the minutes of the MPC meeting on August 6, which were published today.
Tim Besley and David Miles also voted in favour of the larger cash boost.
Peter Dixon, an economist at Commerzbank, said that decision "clearly suggests that the Bank is leaving the door open for additional measures", adding that additional quantitative easing is "still very much in play".
The minutes of the meeting also revealed that all MPC members voted in favour of interest rates remaining at 0.5%.
Quantitative easing is sometimes described as 'printing money', although the central bank actually creates it electronically by increasing the credit in its own bank account.
It is used to stimulate an economy where interest rates are either at, or close to, zero.
Normally, a central bank stimulates the economy indirectly by lowering interest rates but when it cannot lower them any further it can attempt to 'seed' the financial system with new money through what is know as quantitative easing.
See: No Change For Interest Rate
(KMcA/BMcC)
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Ulster Bank Announce New Vertical Bank Notes
Ulster Bank has announced the introduction of two new vertical polymer banknotes, which will enter circulation in 2019. The new £5 and £10 notes are based on the theme 'living in nature' and will feature Strangford Lough, Brent geese, Lough Erne, the Irish hare and Guelder-rose shrubs.
Ulster Bank Announce New Vertical Bank Notes
Ulster Bank has announced the introduction of two new vertical polymer banknotes, which will enter circulation in 2019. The new £5 and £10 notes are based on the theme 'living in nature' and will feature Strangford Lough, Brent geese, Lough Erne, the Irish hare and Guelder-rose shrubs.
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Northern Ireland WeatherToday:A very mild, but mostly cloudy day, although with some bright or sunny spells. It will be mostly dry in the morning, but a little patchy light rain or drizzle at times in the afternoon. Maximum temperature 14 °C.Tonight:A band of heavier rain will move east during the evening before clearing eastwards after midnight. then mostly dry through the early hours, but a little rain towards dawn. Minimum temperature 8 °C.
