Tensions rise among MPC over more QE

first_imgSunday 3 October 2010 10:20 pm Tags: NULL KCS-content Share More From Our Partners A ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgKiller drone ‘hunted down a human target’ without being told tonypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.org Tensions rise among MPC over more QE SPECULATION of a three-way split among the Bank of England’s Monetary Policy Committee (MPC) has intensified in recent days, creating a debate among City economists about whether the Bank will loosen policy even further. External MPC member Adam Posen last week put the cat among the already nervous pigeons when he argued strongly in favour of further quantitative easing (QE) if Britain is to avoid a Japan-style stagnation. Although Posen said his vote should not be seen as a foregone conclusion, the likelihood of a three-way split has grown, with Andrew Sentance remaining the hawk. Three-way splits are relatively rare – the last time was in July and August of 2008. Since central bank independence in 1997 there have only been three other occurrences of a three-way split. Recent economic data has proved disappointing. On Friday, the September manufacturing purchasing managers’ index (PMI) showed a slowdown while public spending cuts are expected to curb activity and economic growth. However, the MPC is faced with persistently-high inflation, which will be stoked by rising food prices and the Janaury VAT hike. Sentance argues that the MPC risks losing its inflation-fighting credibiliy if no action is taken. But economists doubt that either Posen or Sentance will sway the MPC this month: “With long-term inflation expectations roughly stable, Sentance’s worries over lost MPC credibility lack immediate bite. At the same time, Posen’s case – that the UK is like Japan – is weakened by the marked pick up in nominal GDP and ongoing stimulus from the low pound,” said Citi’s Michael Saunders.November is seen as a likely month for the Bank to move. Until then, committee members’ speeches and interviews will be scrutinised for hawkish or dovish tones. center_img whatsapp Show Comments ▼ by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastNoteabley25 Funny Notes Written By StrangersNoteableyMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBemoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comMagellan TimesThis Is Why The Roy Rogers Museum Has Been Closed For GoodMagellan Times whatsapplast_img

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