CITY A.M. SHADOW MPC
ALLISTER HEATH CITY A.M.
“The MPC should hold QE – or at the very least increase it by less than £25bn while signalling that the measures are coming to an end. The latest PMI figures show that growth is slowly but surely returning to the UK.”
SIMON WARD HENDERSON NEW STAR
“Hold rates, suspend QE. The weight of evidence suggests a solid economic recovery. Core inflation remains stubborn and inflation expectations are rising. Policy-makers should be eyeing the exit not discussing more stimulus.”
HOWARD ARCHER IHS GLOBAL INSIGHT
“Raise QE by £25bn and hold rates. The GDP data overstates the current weakness of the economy, but there are serious obstacles to sustainable recovery including weak money supply growth and bank lending.”
VICKY REDWOOD CAPITAL ECONOMICS
“The MPC should increase its asset purchases by another £50bn. The £175bn already pumped is having limited effects, the economy is struggling to grow again and deflation remains a key threat.”
TREVOR WILLIAMS LLOYDS TSB
“Hold rates and extend QE by £50bn but over six months rather than three. Given interest rates and fiscal loosening, there seem to be few realistic options apart from pursuing QE further to ensure a sustainable recovery.”
GRAEME LEACH IOD
“Interest rates need to remain on hold but we also need to see an extension in QE of another £25-50bn. QE has prevented the economy from getting any worse but it is still not doing enough to make it better.”
GEORGE BUCKLEY DEUTSCHE BANK
“Add £50bn to QE. Weaker economic growth can easily justify a further £50bn, but this should be kept under close review in the event that the economy surprises to the upside over the coming months.”
MICHAEL SAUNDERS CITIGROUP
“My vote would be to not extend QE and to refocus the existing asset purchases onto private sector assets. But I suspect the MPC wil buy a further £25bn of gilts over the next three months, extending QE at a modest pace.”
JAMIE DANNHAUSER LOMBARD STREET RESEARCH
“The MPC should hold fire on any further QE for now. More may have to be done early next year. But if so, the committee should shift its focus to the private debt markets.”