At the last meeting, it was seven to one, with Haldane the only dissident on the QE initiative.
The most likely outcome of the policy vote is six in favour of leaving monetary policy (rates and QE) as it is and two against the position. Philip Shaw, economist at Investec, said: “It is possible that the ongoing robust nature of the UK economic recovery triggers a significant debate of the design of the current QE programme.”Įxperts are forecasting the MPC to vote in favour of its current bond buying programme and to keep rates at 0.1 per cent.īut, Haldane’s criticism may have empowered MPC members to voice their opposition. Likely dissenters are Michael Saunders and Sir Dave Ramsden, who have both signalled their discomfort toward the Bank’s adherence to swelling its stock of government and corporate debt to £895bn.
Read more: Sunday Read: Bank of England’s QE programme has muddied the water between right and wrong The City is also waiting to see who will follow in Haldane’s footsteps in voting against the final £50bn round of bond purchases and, in the long run, who will provide a hawkish anchor to the Bank’s monetary policy stance. Much of the focus on Thursday’s MPC policy announcements will be on whether the Bank provides any insight on when it will reduce its balance sheet.
A big hole has been left at the table of the latest round of the Bank of England’s monetary policy committee meetings – they are the first since chief economist Andy Haldane departed the Old Lady after over 30 years of service.
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