Sentance: Next month is crunch time for QE

Former Bank of England committee member Andrew Sentance said today's decision by the MPC to keep its £325bn quantitative easing programme on hold is no surprise.

In an interview with Bloomberg TV, Sentance said next month is crunch time for the committee to decide whether to extend the stimulus measures, when its current asset purchase programme draws to a close. "Keeping the programme on hold was no surprise and, although two members of the committee last month voted to extend the programme I felt this was a bit of a red herring and others would not follow suit today," said Sentance. "All the action will be next month but, even if the banks carry on with more QE, I think it will be scaled down." He said with consumer price inflation at 3.4...