MPC members were tempted to step up QE policy

All nine members of the MPC voted to maintain the Bank’s asset purchase target at the £375bn agreed in July, but for some policymakers this decision was “finely balanced” and there was a good case for more.

This view contrasts with the message from Governor Meryvn King last week, who said there was no urgent need to print more money beyond what it had already announced.

However, the minutes show that the majority of the MPC appeared to share Mr King’s view.

They wanted more time to assess the impact of the Bank’s new Funding for Lending Scheme (FLS) to boost bank credit, which started on August 1, as this could help the economy more than the central bank assumed in its August forecasts.

“For most members, the decision this month was relatively straightforward.

“Over the coming months, the committee could take stock of the impact of the FLS and the implications this had for other potential policy options,” the Bank said.

“For some members, the decision was nevertheless more finely balanced, since a good case could be made at this meeting for more asset purchases,” the minutes continued.

Last week the Bank slashed its growth outlook for this year to zero and sharply downgraded its medium-term forecast as euro zone ‘storm clouds’ cast a long shadow and scars from the global financial crisis appeared deeper than previously thought.

However, it cut its inflation forecast more modestly, concerned that the productive capacity of Britain’s economy might have suffered lasting damage.

Meanwhile, Deputy Governor Charlie Bean visited businesses in the region on Tuesday, including Redmayne Bentley in Leeds and Pegler Yorkshire in Doncaster.

Managing director Stuart Anderson said: “It was evident Mr Bean was keen to see innovation at the forefront of British manufacturing and the opportunities these innovations offer to both the regional business community and export sales.”