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CITY AM | SHADOW MPC

ALLISTER HEATH | CITY A.M.
“The PMI services data show the UK grew in the fourth quarter and the money supply figures looked healthier than expected. QE needs to be stopped sooner rather than later but rates should stay put for now.”

SIMON WARD | HENDERSON
“Suspend QE and signal an intention to begin normalising Bank rate. Policy must remain loose to support the recovery but current emergency settings are no longer warranted.”

TREVOR WILLIAMS | LLOYDS TSB CORPORATE MARKETS
“Keep policy on hold for now, though the MPC may have to extend QE in February. There are signs of revival but the recovery will need to be assisted by continued monetary loosening to combat first half headwinds.”

GEORGE BUCKLEY | DEUTSCHE BANK
“I think the Bank should sit on its hands this month. If further policy easing is required (which we think unlikely) then it would make sense to wait until the February forecasting round before adjusting policy further.”

HOWARD ARCHER | IHS GLOBAL INSIGHT
”No need to do anything this month with the current QE program due to last until February, latest economic data showing overall improvement and signs emerging that bank lending could be starting to pick up.”

VICKY REDWOOD | CAPITAL ECONOMICS
“The MPC should continue with the £25bn QE underway and save any decision about whether to expand the programme even further until February’s Inflation Report. It should not rule out more action.”

MICHAEL SAUNDERS | CITIGROUP
“The MPC will do nothing at this meeting, wait for February, and might as well go out and enjoy the snow. It’s a meeting that does not need to happen.”

JAMIE DANNHAUSER | LOMBARD STREET RESEARCH
“Despite minimal monetary growth in recent months, the MPC should hold fire at this meeting. But given the state of the banking system, it would be wrong to rule out a further expansion of QE.”

GRAEME LEACH | IOD
“The MPC should wait until the February meeting before deciding whether or not to alter monetary policy – as of now, there is no need to make any changes to interest rates or QE.”