As expected.
- Some MPC members thought further expansion of QE was likely to be required
- Some saw risk that spare capacity greater than assumed in November inflation report
- Others saw risks to inflation more finely balanced, less clear that inflation would fall below target
- Considerable downside risks from global economy, most serious near-term risks moderated
- UK output likely to be broadly flat in Q4 2011, Q1 2012
- UK inflation to fall sharply in coming months, extent and speed of further fall uncertain
- Mixed news on energy prices, Middle East tensions raised risk of sharp rise in oil prices
- No compelling reason to think that QE impact now materially different from first round
