Belfast Telegraph

Unease in spite of recovery forecast


THE Bank of England has upgraded its forecast for the economy but policymakers are split over whether billions more pounds are still needed to support recovery.

Members of the bank's Monetary Policy Committee voted unanimously to keep the £375bn quantitative easing programme at the same level while also leaving interest rates unchanged at 0.5%, minutes of the September meeting showed.

But disagreement over the strength of the recovery – amid a slew of positive signs from across the economy – hinted at future schisms over the way ahead.

The minutes of the meeting revealed the bank's experts now expect gross domestic product to grow by 0.7% in the third quarter, up from a 0.5% estimate.

The minutes also did not reveal whether governor Mark Carney – seen as an activist on monetary policy – was among the camp arguing in favour of an additional tranche of asset purchases in future.

But it revealed apparent frustration over the reaction of financial markets and the perception that it should be communicated better.

Belfast Telegraph