Bank expected to sit on hands

Ben Southwood
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MARKET observers are expecting Bank of England policymakers to hold off on any further monetary policy interventions when they decide on rates and asset purchases today.

Many analysts say there will be no rate cut nor any increase in quantitative easing (QE).

“[The Monetary Policy Committee (MPC) meeting] is set to be a non-event,” said Tobias Blattner at Daiwa Capital Markets, “With policy set to be left unchanged as the Bank continues to implement its latest round of gilt purchases.”

City A.M.’s shadow MPC is in agreement with the majority, with eight of our nine-member committee voting against changing policy.

Capital Economics’ Vicky Redwood is the sole voice of dissent. She argues for a further cut in interest rates, saying the Bank needs to do more in order to stimulate the economy.