August – Bank base rate, in the minutes released from August’s Monetary Policy Committee meeting, the vote to keep both bank rate and asset purchases the same was unanimous.

The Governor invited the Committee to vote on the propositions that: Bank Rate should be maintained at 0.5%

The Bank of England should continue with the programme of asset purchases totalling £375 billion financed by the issuance of central bank reserves.

Regarding Bank Rate, the Committee voted unanimously in favour of the proposition. Regarding the stock of asset purchases, the Committee voted unanimously in favour of the proposition.

In the minutes, it is clear that the issue of asset purchase was discussed extensively, although it states that ‘with the squeeze on real incomes beginning to ease, some recovery in spending was probable’. It also mentions the recently-launched Funding for Lending scheme – which is now in its drawdown period – stating that it had ‘the potential to improve funding conditions for banks and encourage lending’, thus leading to their decision to refrain from making additional asset purchases.

Finally, the Governor expressed his appreciation to Adam Posen for his contribution as a member of the Committee.

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