Pound advances versus dollar as MPC minutes reveal QE split

The pound has advanced in trading with the dollar this morning (December 19th) after the Bank of England (BoE) policy-making meeting minutes revealed a split over increasing the institution's current programme of asset purchases.

Monetary Policy Committee (MPC) member David Miles broke with his colleagues by voting in favour of a £25 billion increase in the BoE's current quantitative easing (QE) progamme, which is worth £375 billion.

The MPC last upped its bond-buying stimulus in July, raising QE to the current level.

Economists thought the committee would raise QE again before the end of the year given the lack of reports indicating the economy is returning to growth.

Despite their differences over QE, the MPC unanimously agreed to keep interest rates at their 0.5 per cent historic low, which has been a constant for more than three years.

At 11:45 GMT, the pound appreciated by 0.3 per cent in forex trading with the dollar, to £1 buying $1.629.

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