King: Why I voted for more QE and am not ruling out rate cuts

Bank of England governor Mervyn King said he voted for more QE at the last meeting of the MPC because he is fearful over the outlook for Asia, emerging markets, and the US, as well as the ongoing eurozone crisis.

Addressing the Treasury Select Committee on the Bank’s quarterly inflation report, King responded to a series of questions on the strength of the UK economy and monetary policy. The minutes of June’s meeting of the Monetary Policy Committee showed  the members voted five to four to maintain quantitative easing at £325bn, overruling the governor and three colleagues who called for further expansion. Five members including Charles Bean and Paul Tucker opted to maintain QE at its current level, while King, David Miles and Adam Posen opted to increase it by £50bn, while Paul Fisher wanted...