• MPC voted 8-1 in favour of keeping QE at £375 bln, with BOE’s Miles voting for a rise to £400 bln
  • Unanimous over keep rates unchanged

BOE- recent monthly developments strengthened some members view that no more Qe was needed, more Qe could have ‘considerablke scope’ to lower debt yields , but impact on demand remains uncertain

  • Miles saw case for more QE due to economic slack and risk of damage from weak growth
  • US fiscal deal and signs of pick up in global growth are positive but hard to see underlying growth in the UK
  • Sterling’s real exchange level may be higher than needed to rebalance the UK economy