CITY A.M. | SHADOW MPC

ALLISTER HEATH | CITY A.M.
“The situation in the Eurozone is too uncertain to make any firm decisions right now. I vote to hold interest rates and hold QE until we know more on plans for fiscal integration, and on the markets’ reaction.”

SIMON WARD | HENDERSON
“Stop gilt purchases and instead buy bank bonds, expand liquidity facilities and ease capital requirements. There is no current shortage of liquidity, but the authorities must head off further bank deleveraging.”

GEORGE BUCKLEY | DEUTSCHE BANK
“No change in rates or QE. With the Bank currently undertaking £75bn of QE it makes sense to wait until the current programme is complete before evaluating whether the economy requires more stimulus.”

TREVOR WILLIAMS | LLOYDS
“Hold rates and QE, but aim to increase QE to £400bn in 2012. Although inflation is eroding incomes, deflation would have been worse. Right now, we should provide sufficient liquidity to prevent a severe downturn.”

VICKY REDWOOD | CAPITAL ECONOMICS
“I vote to hold interest rates and QE, but stand ready to do another £75bn of asset purchases when the current ones are completed. Now that inflation has peaked, it is likely to fall like a stone over the next year or so.”

GRAEME LEACH | IOD
“I am voting to keep policy on hold this month and wait to see how the Eurozone debt crisis unfolds. However, further big extensions in quantitative easing look very likely in the New Year.”

HOLGER SCHMIEDING | BERENBERG BANK
“Hold. Whether we like it or not, the UK is part of Europe. In line with the Eurozone, the UK is heading for renewed recession. The Bank should clearly signal that it intends to raise QE early next year if need be.”

Ross Walker | RBS
“Hold rates and QE. The flow of official data suggests the UK economy will all but stagnate this quarter, and fragile domestic demand warrants a continuation of the accommodative monetary policy stance.”

VICKY PRYCE | FTI CONSULTING
“Hold but consider extending QE further in the New Year and even offer prospect of a cut in rates. The Autumn Statement was neutral for the economy while the OBR UK forecasts make grim reading for 2012.”