Bank of England votes against further QE

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The Bank of England has voted against another round of quantitative easing (QE) to inject more money into the ailing economy.

Announcing the decision today (November 7th), the financial body – which has already supplied £375 billion through this method – confirmed its plans after the country made a surprisingly strong departure form recession during the third quarter.

The move comes after speculation more QE would be required in the future following a Monetary Policy Committee meeting last month, which revealed some members believe the economy is still weak.

Vicky Redwood from Capital Economics said: “We are pretty sure that the economy will need more stimulus in the months ahead.”

She added that the decision to imply there is nothing the MPC can do to help the country’s finances would not help to restore confidence among cautious consumers.

The Bank of England also opted to keep interest rates at 0.5 per cent today, in-keeping with the record low they have been held at since March 2009.

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