Bank of England split on stimulus this month

Associated Press

LONDON (AP) — The Bank of England's Monetary Policy Committee came within one vote of backing more monetary stimulus for the economy at its meeting earlier this month.

Minutes of the MPC's June meeting released Wednesday showed that Governor Mervyn King joined with two other members in favor of an injection of 50 billion pounds ($78.6 billion), and a fourth member voted for a smaller shot of 25 billion pounds. Five members opposed additional stimulus.

The Bank of England has pumped 325 billion pounds ($509 billion) into the economy since March 2009 through quantitative easing, the purchases of high-quality assets including government securities from banks.

With worries about inflation easing, many analysts believe the committee will approve more stimulus in July.

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