MNI BRIEF: Two BOE MPC Members Back Ending QE Round

Bank of England Deputy Governor Dave Ramsden joined Michael Saunders in favouring an immediate end to asset purchases, lowering the stock target of government bond purchases to GBP840 billion from GBP875 billion. As current asset purchases are set to be completed by the end of the year and with Ramsden and Saunders' dissent failing to gain broader support, the current QE round now looks sure to be completed.

Nevertheless, the reason for their dissent was significant as they said that "the economic outlook warranted a tightening in the monetary policy stance" and their views suggest that they could move fairly swiftly to backing an interest rate hikes once QE is completed. Before the meeting there was speculation that new Chief Economist Huw Pill could join the hawks, but he went with the majority.

The overall stock target of QE was maintained at GBP 895 billion at the September meeting, with GBP 20 billion in corporate bond buys. Interest rates were maintained at 0.1%