The Bank of England is set to begin "printing money" in a bid to boost the economy after its rate-setting committee unanimously agreed that its Governor must write to the Chancellor.
The minutes of the Bank's rate-setting meeting earlier this month showed that as well as voting 8-1 to cut rates to 1 per cent, the nine-strong Monetary Policy Committee (MPC) agreed that the Mervyn King, the Bank's Governor, should write to Alistair Darling to seek permission to embark on "quantitative easing" — sometimes called printing money.
The minutes said: "It is unlikely that the inflation target could be met solely by cutting Bank Rate. Official figures released yesterday showed that the CPI inflation, the Bank's target measure, fell again in Janaury to 3 per cent from 3.1 per cent. But it is widely expected to slide well below the Bank's 2 per cent target in the coming months, rising the risk of deflation. The Bank has forecast that inflation will remain close to zero until 2012.
"Therefore the Committee unanimously agreed that the Governor should write on its behalf to the Chancellor to seek authority to conduct purchases of government and other securities, financed by the creation of central bank money using the Asset Purchase Facility."
The Mugabe option is kicking in officially.
We are fucked.