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CITY AM SHADOW MPC

<strong>ALLISTER HEATH CITY A.M.</strong><br />The recession is coming to an end, even though money supply growth remains weak. The Bank should suspend its quantitative easing operations for the time being.<br /><br /><strong>SIMON WARD HENDERSON NEW STAR</strong><br />&ldquo;Await more evidence before deciding on a further expansion of QE. The latest broad money numbers were disappointing but financial market behaviour suggests ample liquidity and economic indicators are improving.&rdquo;<br /><br /><strong>JAMIE DANNHAUSER LOMBARD STREET RESEARCH</strong><br />&ldquo;The second quarter monetary data suggest the Bank has not yet done enough to ensure a sustained growth recovery. The current &pound;150bn llowance should be fully utilised, and extended to &pound;200bn.&rdquo;<br /><br /><strong>HOWARD ARCHER IHS GLOBAL INSIGHT</strong><br />&ldquo;Hold rates and use the final &pound;25bn currently sanctioned for QE and keep all options open. Despite markedly improved data, sustainable recovery remains far from certain and bank lending is still a serious concern.&rdquo;<br /><br /><strong>TREVOR WILLIAMS LLOYDS TSB</strong><br />&ldquo;Hold rates, extend QE to &pound;150bn and ask for more to be added to the facility. Current growth in M4 is not consistent with a sustainable recovery and a stronger rate is a prequisite for economic growth to resume.&rdquo;<br /><br /><strong>MICHAEL SAUNDERS CITIGROUP</strong><br />&ldquo;I expect the MPC to end the expansion of QE, hence ending the gilt buying programme. They will, however, be keen to ensure that markets do not interpret the end of QE as a precursor to an imminent rate hike.&rdquo; <br /><br /><strong>VICKY REDWOOD CAPITAL ECONOMICS</strong><br />&ldquo;The fitful nature of the recovery and the weakness of money and lending growth suggests that the MPC should use the last &pound;25bn available and ask the Chancellor to raise QE's limit.&rdquo;<br /><br /><strong>GEORGE BUCKLEY DEUTSCHE BANK</strong><br />&ldquo;Hold rates and QE. Given it takes time for monetary and fiscal support to affect the economy and that there are some signs of recovery, we suggest against any further stimulus for the time being.&rdquo;<br /><br /><strong>CORIN TAYLOR INSTITUTE OF DIRECTORS</strong><br />"Given weak money supply data and disappointing second quarter GDP, the Bank should hold rates and expand QE by &pound;25bn. Inflation is still a risk further out but it does not yet require monetary tightening.&rdquo;