BoE: higher probability of further stimulus

Minutes from the Bank of England's (BoE) latest Monetary Policy Committee (MPC) meeting published on Wednesday said the probability of further stimulus measures had increased after a moderation in economic activity.

A summary of the 8-9 September meeting said: "Some members felt the probability that further action would become necessary to stimulate the economy and keep inflation on track to hit the target in the medium term had increased."

The committee members were split in their interpretation of economic developments and the balance of risks to activity and inflation in the medium term. Some thought the prospects for activity during the second half of 2010 was little changed, others that the recovery in private sector demand in the United Kingdom and overseas was somewhat stronger than anticipated.

The MPC voted to maintain the bank rate at 0.5% and the stock of asset purchases financed by the issuance of central bank reserves at £200 billion ($312.6 billion). Andrew Sentance was the sole dissenter, voting to raise the benchmark bank rate by 25 basis points.

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