Bank of England extends quantitative easing to £200bn

(MPC)
Three members, including Mr King, voted to increase the amount by £75 billion to a total of £200 billion, but were outvoted.

But the rest of the committee believed a substantial increase in quantitative easing could lead to a sharp rise in inflation, and urged caution.



3 months ago (deep shitthen)

telegraph20 Aug 2009

The MPC considered the argument in favour of a larger expansion of QE: “The potential adverse consequences of adding another large monetary stimulus might be less severe than the possible costs of acting too cautiously.”

Economists said that the views expressed in the minutes made a further QE expansion more likely: “At this stage, the odds are tilted towards another £50bn of QE in November,” said Ross Walker, economist at Royal Bank of Scotland. However, fresh figures from the Bank also showed that its Inflation Report forecast is the strongest it has ever published.

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The committee acknowledged the impact so far on money growth was "weak" but said a positive effect may more clear in the future.
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Once the printing presses start the governments will then find it harder to stop printing and wean the economy off the need for repetitive injections of fresh cash,the eventual outcome eventual outcome of quantitative easing is total destruction of the currency.







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