The bank of England has today paved the way for more quantitative easing, known in some circles as printing money.

The latest minutes of the bank’s monetary policy committee shows that, as expected, only one member, the US economist and dove, Adam Posen, was in favour of extending QE by £50 billion to £250 billion.

But as the minutes show, unless the economic position changes for the better, some members would like to see the asset purchase programme restarted.

“For most members, the decision of whether to embark on further monetary easing at this meeting was finely balanced since the weakness and stresses of the past month had significantly strengthened the case for an immediate resumption of asset purchases. For some members, a continuation of the conditions seen over the past month would probably be sufficient to justify an expansion of the asset purchase programme at a subsequent meeting.” The minutes stated.

The MPC also expect inflation to creep up over the next few years to 5% before falling back to its target of 2% in 2012.

Some more letters for Mervyn King to write to the Chancellor then.

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