BANK of England policymakers voted unanimously to leave interest rates and their money-boosting programme unchanged this month, it was revealed today.
Minutes of October’s meeting of the Monetary Policy Committee (MPC) showed rate-setters believed quantitative easing (QE) had contributed to "substantial" cuts in interbank lending rates, a hike in asset prices and the bounce-back in financial markets.
The results so far from its £175 billion QE programme would help boost the economy, according to the MPC, as it appeared to shrug off wider market concerns over the success of QE.
But the MPC warned of potential hefty losses still to come from the banking sector as it said the mammoth balance sheet adjustments needed could outweigh recent signs of improvement.
