City A.M. | Our shadow MPC votes 8-1 for no new action

ALLISTER HEATH | CITY A.M.
“Hold policy on interest rates and QE. Instead of coming up with fancy schemes to bring interest rates down even further, the Bank needs to realise that tight money isn't the problem. We need supply-side reforms – such as today’s housing shake-up – not ever easier money.”

GRAEME LEACH | INSTITUTE OF DIRECTORS
“No change to interest rates or QE. The monetary policy committee’s preferred broad money supply measure has picked up recently and we need a clearer trend in this before introducing any change in policy.”

GEORGE BUCKLEY | DEUTSCHE BANK
“With some of the business survey data pointing upwards and the asset purchase programme ongoing, there seems little need for additional monetary loosening this month”

VICKY REDWOOD | CAPITAL ECONOMICS
“Cut interest rates to 0.25 per cent and continue with the extra QE already in progress. The economy clearly needs more support and the stimulus undertaken so far won’t be enough to get the recovery back on track.”

HOLGER SCHMIEDING | BERENBERG BANK
“Hold policy. The MPC should leave all options open to ease policy further. But as the current asset purchase programme is still running, the MPC has no need to decide on further actions at this meeting already.”

SIMON WARD | HENDERSON
“Hold. The Bank of England may have overstimulated – monetary trends were signalling an improved economic outlook before the July extension of QE, while CPI inflation may rebound to three per cent plus by early 2013.”

VICKY PRYCE | FORMER GOVT ADVISER
“Hold but keep open possibility for further easing. Europe weakness persists and forecasts suggest a fall in UK GDP this year. Any infrastructure and housing stimulus will take time to be felt.“

TREVOR WILLIAMS | LLOYDS BANK
“Rates should stay on hold, with QE maintained at the current spend rate to November. The economy is showing signs of picking up in Q3, and for the second half of the year is likely, so policy should remain on hold."

ROSS WALKER | RBS
“The Bank is mid-way through the £50bn of gilt purchases and there is no compelling reason to raise the purchase target. Similarly, the benefits of a Bank Rate cut would be modest.”