Eric Arthur Blair
08-19-2009, 07:45 PM
The Bank of England surprised markets earlier this month with an unexpectedly large increase in its asset-purchase program, but Mervyn King, the central bank's governor, didn't think the increase was big enough, according to minutes of the August meeting of the Monetary Policy Committee released Wednesday.
The Bank of England announced Aug. 6 that it was expanding the size of the asset-purchase program by 50 billion pounds ($82 billion) to a new total of 175 billion pounds, catching financial markets off guard amid expectations that it was likely to either put its quantitative-easing program on pause or expand it by no more than 25 billion pounds.
But in another surprise, the minutes revealed that the increase of 50 billion pounds was approved in a 6-3 vote, with King and MPC members Tim Besley and David Miles voting against it. They preferred to increase the program by 75 billion pounds, to 200 billion pounds, the minutes showed.
http://www.marketwatch.com/story/bank-of-englands-king-sought-bigger-bond-buys-2009-08-19
So King wanted to print 75 billion out of thin air but the poor puppy had to settle for 50 billion instead. What's a banker to do. :rolleyes:
The Bank of England announced Aug. 6 that it was expanding the size of the asset-purchase program by 50 billion pounds ($82 billion) to a new total of 175 billion pounds, catching financial markets off guard amid expectations that it was likely to either put its quantitative-easing program on pause or expand it by no more than 25 billion pounds.
But in another surprise, the minutes revealed that the increase of 50 billion pounds was approved in a 6-3 vote, with King and MPC members Tim Besley and David Miles voting against it. They preferred to increase the program by 75 billion pounds, to 200 billion pounds, the minutes showed.
http://www.marketwatch.com/story/bank-of-englands-king-sought-bigger-bond-buys-2009-08-19
So King wanted to print 75 billion out of thin air but the poor puppy had to settle for 50 billion instead. What's a banker to do. :rolleyes: