BOE committee split on printing money

August 19, 2009

Bank of England policy makers were split in a decision to increase the ceiling of a qualitative easing program, meeting minutes released Wednesday show.

The minutes show bank Gov. Mervyn King and two Monetary Policy Committee members voted to increase qualitative easing earlier this month by $123.6 billion to lift the ceiling to a total of $329 billion.

Qualitative easing, known as printing money, is a plan to purchase government and corporate bonds.

King was voted down, as six committee members voted to lift the ceiling by $84.5 billion, rather than $123.6.

King’s preference, which did not go through, would have increased the program to about 14 percent of Britain’s gross domestic product or about half the British gilts market, London’s Daily Telegraph reported.

Source: upi

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