BoE likely to hold QE at $604bn, economists feel

4 October 2012

Policymakers at the Bank of England (BoE) are unlikely to vote for another round of quantitative easing (QE) when they hold their monthly meeting later today (4 October).

That is according to the vast majority of economists polled by Reuters and Bloomberg, who believe the Monetary Policy Committee (MPC) will opt to keep its asset purchasing budget the same.

Earlier this year, the nine members of the MPC decided to boost the country's monetary stimulus package to a level of £375 billion ($604 billion) amid ongoing concerns about the health of the British economy.

However experts feel the BoE officials will wait and see whether the nascent signs of growth in the wake of the London 2012 Olympics develop before implementing more QE.

Indeed, 58 of the 59 specialists asked by Reuters said this would be the case, while 40 out of the 40 canvassed by Bloomberg indicated the same.

By Asim Shah

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