BoE experts split over boosting economy

Bank of England policymakers were divided three ways over their decision on how to boost the economy this month, it was revealed today.

Minutes of November’s meeting of the Monetary Policy Committee (MPC) showed chief economist Spencer Dale did not want to increase the money-boosting programme at all, while external member David Miles thought a £40bn (€44.9bn) boost was appropriate.

The rest – including governor Mervyn King – opted for a more modest addition of £25bn (€28bn).

It is the first time the committee has been torn three ways over quantitative easing (QE).

In the end the nine-strong MPC decided to pump an extra £25bn (€28bn) into the economy – bringing the total planned spending under the scheme to £200bn (€225bn) - while leaving rates at their record low of 0.5%.