The Bank of England moved further away from adding more stimulus to Britain’s economy this month and seemed less concerned by rising market borrowing costs, minutes of its latest policy meeting showed on Wednesday. The two current policymakers who in previous months had seen a compelling case for more asset purchases to stimulate activity retreated from this position at the September meeting following signs of strengthening economic growth.
The nine-member Monetary Policy Committee (MPC) also chose not to repeat July and August’s warning that bond market yields were rising faster the data warranted — a rise the Bank had previously worried might be a headwind to the recovery.
It said “promising” data over the past month meant output in the third quarter was likely to be around 0.7%, higher than the 0.5% it forecast in August. It also predicted growth could strengthen further towards the end of the year.
Policy committee members Paul Fisher and David Miles had voted earlier in the year to restart the central bank’s QE asset-buying programme. They put their call on hold in July and August pending an assessment of future rate guidance adopted by governor Mark Carney. The BoE remains keen to avoid having markets think any rise in official interest rates is imminent while recovery remains in its early stages.