Analysts don’t forsee new QE

Ben Southwood
Follow Ben
CITY analysts expect the Bank of England to continue its wait and see approach to monetary policy in its September meeting today, keeping rates constant, and continuing to carry out previously announced asset purchases.

Martin Beck at Capital Economics said that the positive news in the service sector would provide extra reason for the Bank to sit on its hands and wait before engaging in any new major policy initiatives.

Chris Scicluna at Daiwa Capital agreed. “The next move from the monetary policy committee, almost certainly another increase in gilt purchases, is not likely until November,” he said.