City A.M. | Our shadow MPC votes 6-3 against more QE

ALLISTER HEATH | CITY A.M.
“No new quantitative easing and no further cut to rates. The money supply has bounced back. But the main reason why QE needs to be halted - despite worrying signs that the economy has ground to a halt again – is that it has created a false markets in gilts and blurred the distinction between monetary and fiscal policy.”

GRAEME LEACH | INSTITUTE OF DIRECTORS
“At long last broad money supply is showing sufficient growth to negate the need for further QE, so no change this month and let’s hope QE has finally come to an end. But we need current growth to be sustained for that. Hold rates.”

GEORGE BUCKLEY | DEUTSCHE BANK
“Hold rates and QE. Weaker business surveys suggest that the improvement in third quarter GDP will not last. Still, concerns about QE's effect in supporting inflation are sufficient to warrant a break in policy easing this month.”

VICKY REDWOOD | CAPITAL ECONOMICS
“£50bn more QE. The rise in GDP in the third quarter was just due to temporary factors and the recent business surveys suggest that the underlying recovery is still struggling. Leave rates on hold, but with a bias to cut further.”

ROBERT WOOD | BERENBERG BANK
“£50bn more QE and no change to interest rates. More stimulus is needed. The UK has seen no growth for a year and a return to contraction in the fourth quarter seems likely. The outlook for next year is weak.”

SIMON WARD | HENDERSON
“Hold rates, suspend QE. Money growth has picked up globally and at home, suggesting stronger economic activity in early 2013 and firmer inflation further ahead. And the Funding for Lending Scheme is still feeding through.”

VICKY PRYCE | FORMER GOVT ADVISER
“Hold interest rates and further QE but keep under review. UK indicators are mixed, and US economic prospects are uncertain due to the fiscal cliff, while the Eurozone remains in political paralysis.”

TREVOR WILLIAMS | LLOYDS TSB
“Hold bank rate. Extend QE by another £50bn as uncertainties about the durability of the uk recovery, US fiscal cliff and challenges in Europe still persist and could intensify.”

ROSS WALKER | RBS
“No change on either count. The decision around further QE in November is a finely balanced one. The advent of Funding for Lending makes it easier to hold off, but the underlying economic data remain fragile.”