The Mail on Sunday

MPC‘to put off decisions’

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THE Monetary Policy Committee will gather this week for what seems certain to be its last meeting before the General Election.

Amid signs of differing opinions among the nine members about whether to extend its emergency £200 billion money creation scheme – quantitati­ve easing – the MPC is expected to defer a decision until after the poll.

In March last year the interest rate was slashed to 0.5 per cent. According to the Bank, changes in the rate should influence output after about a year. The quantitati­ve easing programme was also launched in March 2009.

Ross Walker, economist at Royal Bank of Scotland, said: ‘There is a lot of cheap money and that has led to rallies in the price of assets such as property, commoditie­s and equities.’

However, he said it was more important for lending to start flowing through to small and medium-sized businesses.

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