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CITY A.M. | SHADOW MPC

ALLISTER HEATH | CITY A.M.
“The Bank should hike rates by a symbolic 0.25 per cent to show that it is serious when it comes to fighting inflation and that it is confident the economy is growing again. The UK is weak but no longer in recession.”

SIMON WARD | HENDERSON
“Raise rates by 25 basis points. Emergency policies are no longer warranted. The economy is gaining momentum and firms are passing on rising raw material costs. Sub-inflation official rates are distortionary, risking asset bubbles.”

VICKY REDWOOD | CAPITAL ECONOMICS
“The economy needs more support, but the current strategy of holding fire until inflation slows clearer signs of falling seems sensible. I’d leave policy unchanged this month, but with a bias to a further loosening.”

MICHAEL SAUNDERS | CITIGROUP
“The economy is picking up and inflation remains well above target. Eventually, the MPC will need to tighten. But for now, they will await the election and enjoy the signs of spring.”

GEORGE BUCKLEY | DEUTSCHE BANK
“We are at a point where the economy is recovering but remains fragile. Further policy easing is not needed and rate hikes would be premature, meaning another month of steady as she goes.”

HOWARD ARCHER | IHS GLOBAL INSIGHT
“The imminent election demands unchanged policy and this is also justified by economic factors. The economy seems to be improving but a recovery is far from in the bag. Inflation has moderated and sterling has firmed.”

JAMIE DANNHAUSER | LOMBARD STREET RESEARCH
“Business survey pointers about the pace of recovery are mixed. Monetary measures remain disappointingly weak. No change in the policy stance is yet needed; but the MPC would be wise to maintain a dovish rhetoric.”

GRAEME LEACH | IOD
“We think it’s unlikely that the MPC will make changes to rates, as any move could be seen to have a political motive. If there was an extra £25bn in QE this month to boost money supply growth we would be happy.”

TREVOR WILLIAMS | LLOYDS TSB
“The MPC should keep rates and QE on hold. But growth in the economy still timid and monetary growth too weak to be consistent with a sustained recovery, there is still a chance that QE is resumed before too long.”