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CITY A.M. | SHADOW MPC

ALLISTER HEATH | CITY A.M.
“The Bank should keep interest rates on hold and make no further changes to quantitative easing [QE]. The economy is growing again – the services sector PMI data was especially encouraging yesterday.”

SIMON WARD | HENDERSON
“Raise 25 basis points. The recovery is gaining momentum and emergency policy is no longer warranted. Real interest rates have fallen as inflation expectations have risen, contributing to sterling weakness.”

PETER DIXON | COMMERZBANK
“Having been very active in recent months and having ceased asset purchases only a month ago, now is the time for the MPC to take stock. Both rates and QE are on hold for an extended period.”

HOWARD ARCHER | IHS GLOBAL INSIGHT
“Hold on QE and rates. Activity appears to have bounced back in February but the recovery still looks likely to be gradual. Any tightening seems unwarranted for some time despite the current inflation spike.”

VICKY REDWOOD | CAPITAL ECONOMICS
“It makes sense to pause while inflation is high and rising, given the risk that extra QE would push up inflation expectations. But the MPC should remain prepared to increase QE later this year.”

MICHAEL SAUNDERS | CITIGROUP
“The MPC are unlikely to change rates or quantitative easing. The pick up in growth and inflation, along with worries over the UK’s fiscal credibility, makes any extra stimulus both unlikely and risky.”

TREVOR WILLIAMS | LLOYDS TSB
“Leave Bank rate on hold and further QE looks possible. The UK economy is barely growing and unemployment is starting to rise again. Britain faces a stiff challenge in the quarters ahead.”

GRAEME LEACH | IOD
“Monetary growth remains too weak to be confident of a sustained economic recovery. It’s a close call but the MPC may well view a further moderate extension in QE as the safest option.”

JAMIE DANNHAUSER| LOMBARD STREET RESEARCH
“Intense pressure on the banks from the FSA is making a sustainable recovery less likely. An inventory bounce should help but we are biased towards more QE if money and credit growth don’t pick up.”