Governor of the Bank of England voted against further stimulus

18 July 2013

Mark Carney, governor of the Bank of England, along with other policymakers voted overwhelmingly against more stimulus for the economy earlier in July.

The pound rose in value, while bond prices fell, as a result of the 9-0 vote against more bond-buying.

This means the quantitative easing policy in the UK is unchanged at £375 billion for the first time since October 2012.

Meanwhile, Federal Reserve chairman Ben Bernanke again hinted that stimulus would be slowed later this year should the economy remain strong.

The western world is starting to move against increasing quantitative easing, although alternative measures may be implemented if necessary.

Mr Carney and his fellow policymakers appear to be against the move but things could change if the economy needs to be given more stimulus. Mr Bernanke has also stressed that “a highly accommodative monetary policy will remain appropriate for the foreseeable future” even after quantitative easing is reduced.

By Gary Cooper

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