City A.M. shadow MPC votes 7-2 to hold rates

ALLISTER HEATH | CITY A.M.

“Bank rate should rise immediately to one per cent. UK employment has returned to long-term average levels, and hiring still is still accelerating. Monetary policy for emergency conditions is not just unsuitable in this environment, but dangerous too.”

JAMES SPROULE | INSTITUTE OF DIRECTORS

“Hold rates – UK recovery continues to experience noninflationary growth and debt consolidation continues. The danger of deflation remains a strictly Eurozone issue.”

GEORGE BUCKLEY | DEUTSCHE BANK

“With growth strong, the first rate hike is approaching. Subtarget inflation, weak wage growth and output still subdued from its peak allow a little longer before a response.”

SAMUEL TOMBS | CAPITAL ECONOMICS

“Hold rates. Inflation still looks set to ease further, while the recent pick-up in investment bodes well for productivity. What’s more, the housing market seems to be cooling.”

ROBERT WOOD | BERENBERG BANK

“Continued strong economic momentum is pushing me towards a rate hike soon. But I’d wait a couple of months to see if a clearer underlying picture emerges on wages.”

SIMON WARD | HENDERSON

“Raise Bank rate to one per cent. Money trends are strong and the output gap has closed. The suggestion the UK is too fragile to start normalising policy is increasingly ridiculous.”

VICKY PRYCE | CEBR AND BIS ADVISER

“Hold rates. Despite a slight rise in inflation expectations , strong manufacturing and services data and employment demand , wage rises are still low. ”

TREVOR WILLIAMS | LLOYDS BANK

“Inflation remains below target, and seems set to stay there. With wage inflation modest and the unemployment rate still high at 6.8 per cent, I would hold Bank rate.”

ROSS WALKER | RBS

“While a rate rise may be warranted before the end of this year, there is no need to pull the trigger yet. Inflation pressures remain subdued, especially anaemic wage inflation.”