Bank forecast to hold rates

Ben Southwood
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THE BANK of England will resist calls to boost the monetary base even further with more quantitative easing (QE) in January, analysts predicted yesterday.

“Most monetary policy committee (MPC) members seemingly believe there is not a compelling case for more QE, given recent inflation risks and signs the Funding for Lending Scheme may be starting to have an impact,” said IHS Global Insight’s Howard Archer.

The City A.M. shadow MPC agreed with the Bank’s judgement, voting 7-2 against new policy, based on improving monetary and credit conditions.