Bank of England split on stimulus this month

The Bank of England's Monetary Policy Committee came within one vote of backing more monetary stimulus for the economy at its meeting earlier this month, reinforcing expectations that a fresh injection could come in July.

Bank of England governor Sir Mervyn King was one of three Monetary Policy Committee members to vote in favour of more stimulus measures this month.

There is not an ability of central banks to take all these risks out or set the seeds for a sustainable recovery Bank of Canada Governor Mark Carney, urging central banks to secure “escape velocity” for their economies, said there is still room for more monetary stimulus around the world if needed. In comments that may shed light on his thinking as he prepares to take over the Bank of England in July, Carney said policy in developed countries isn’t “maxed out” and that central bankers can be flexible in meeting inflation goals.

The Bank of England's Monetary Policy Committee was split 6-3 on more bond purchases earlier this month, reviving the prospect that the central bank might restart its quantitative easing program.