CITY A.M. | OUR SHADOW MPC VOTES 7-2 FOR NO NEW ACTION

ALLISTER HEATH | CITY A.M.
“No change – this recession can’t be resolved with ever looser monetary policy, and more asset purchases will have negative side-effects. Instead of endless monetary manipulation the government must allow the private sector to thrive through meaningful supply side reform.”

CORIN TAYLOR | INSTITUTE OF DIRECTORS
“The UK is in the middle of a big double-dip and, with no end in sight to the Eurozone crisis, extraordinary measures are needed to avert a real slump. Expand QE by £75bn.”

GEORGE BUCKLEY | DEUTSCHE BANK
“With government policy - funding for lending, the latest round of QE and government guarantees - having had little time to take effect, I suggest no change in policy this month.”

VICKY REDWOOD | CAPITAL ECONOMICS
“Cut interest rates to 0.25 per cent. Given the disillusionment with QE, a return to conventional monetary policy might give a bigger boost to confidence.”

HOLGER SCHMIEDING | BERENBERG BANK
“The Bank already acted last time. I see no need for the BoE to change interest rates or to further raise its asset purchase target at this stage already.”

SIMON WARD | HENDERSON
“Hold policy. The monetary backdrop for the economy was improving even before recent easing measures – real M4ex rose at the fastest pace since early 2009.”

VICKY PRYCE | FORMER GOVT ADVISER
“Hold but don't discount possibility of a cut in the near future. Provisional Q2 GDP figures were disappointing and no signs yet of an end to the uncertainty in Europe.”

TREVOR WILLIAMS | LLOYDS TSB
“Keep rates on hold but be prepared to cut to zero and maintain QE. Downside risks to the economy have materialised and there’s a risk things get worse before they get better.”

ROSS WALKER | RBS
“With the £50bn of QE announced in July still being implemented - and with FLS becoming operational this week – there is little merit in expanding the QE total at this point.“