BoE minutes

No hints about an extension of quantitative easing in the minutes from the October meeting. From the minutes, it is clear the meeting was unnecessary, just a gathering to decide to wait until November, when the MPC can fight over the quarterly inflation and growth forecasts.

The MPC’s confusion over how well quantitative easing is working continues. It says:

“Overall, the evidence suggested that the effect on asset prices had been of the type that the Committee had anticipated when it launched the programme and had been substantial.”

But as Mervyn King continually says, and said again last night, getting money spending growing in line with above trend output growth is crucial and there is precious little evidence of that happening so far. All the MPC could conclude was that money growth had been a bit faster than you might expect since nominal spending fell 5 per cent.

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