Bounty

Concerns over a cooling off in the UK's recovery forced Bank of England policymakers to consider further economy-boosting measures this month.

The monetary policy committee talked about increasing quantitative easing (QE) at their August interest rate meeting, but decided to keep their programme to increase money supply at £200 billion, the meetings minutes revealed.

The minutes also showed the meeting heard arguments in favour of raising interest rates from 0.5%, but members voted 8-1 to leave the rate at the "exceptionally low" level. Andrew Sentance remained the only member on the committee to vote in favour of a rise to 0.75%.

Details of the MPC's discussion came a day after figures revealed inflation had edged down from 3.2% to 3.1% - still well above the bank's 2% target.

The committee said that in the last month surveys had suggested a softening in business and consumer sentiment. And while growth in the second quarter was "surprisingly robust" it had also been erratic, the minutes added.

Copyright Press Association 2010