August 19, 2009

BOE committee split on printing money

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.