Bank of England governor Mervyn King has been asked by the Treasury Select Committee to explain his decision to inject a further £75m into the UK economy through quantitative easing (QE).
This month the Bank extended its asset purchasing programme for the first time since November 2009 in a bid to stimulate business growth. The total amount of money it has injected into the system now stands at £275m. Committee chairman Andrew Tyrie said MPs want to discuss the effectiveness of the "major step" by the Bank. "The committee will appreciate an opportunity to have an explanation for the decision from the Bank," he said. Among the issues the MPs want to discuss are the effectiveness of QE, the case for using the same tool a second time, and the respective roles of the Tr...
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