Bank split over the impact of more QE
Bank of England policymakers are divided over the benefits of pumping more emergency cash into the economy to stimulate the recovery, documents reveal.
Some of the Monetary Policy Committee (MPC) questioned the impact that further quantitative easing — money printing — would have on the economy, minutes of its October meeting said.
The nine-strong panel, chaired by Bank governor Sir Mervyn King, voted unanimously to hold interest rates at 0.5% and maintaining QE at £375bn.
Economists have warned energy price hikes and the impact of US droughts on food prices, will lift inflation in the months ahead.