City A.M. Shadow MPC votes 6-3 against more QE

ALLISTER HEATH | CITY A.M.

“No change. Money supply growth is chugging along , and business surveys suggest the UK will dodge another GDP dip. What's holding the country back is its sclerotic supply-side, and cheap money which stops the creative destruction needed to slay zombie firms and revive the economy.”

GRAEME LEACH | INSTITUTE OF DIRECTORS

“There really isn't a case for changing quantitative easing (QE) or interest rates at present. Sit there and do nothing is the best option.”

GEORGE BUCKLEY | DEUTSCHE BANK

“With inflation approaching three per cent, more asset purchases do not appear warranted at present. But further easing may be needed if the economy continues to disappoint.”

VICKY REDWOOD | CAPITAL ECONOMICS

“Hold rates but do £50bn more QE, and pursue other policy options such as extending the Funding for Lending Scheme further.”

ROBERT WOOD | BERENBERG BANK

“Rates at 0.5 per cent, and £50bn more QE. The economy has gone nowhere for 18 months. Domestic demand is hobbled by a continued squeeze in real incomes. Exports are struggling.”

SIMON WARD | HENDERSON

Hold policy. There is no shortage of liquidity in the economy to warrant additional QE – broad money expansion is at a five-year high and money demand has fallen too.”

HOWARD ARCHER | IHS GLOBAL INSIGHT

“Keep interest rates at 0.5 per cent but go for another £25bn of QE now. Whether or not the economy avoided a triple dip, it is struggling to develop sustainable growth.”

TREVOR WILLIAMS | LLOYDS BANK

“Keep Bank rate at 0.5 per cent and hold QE at £375bn. Data on the economy are mixed but growth of around 0.25 per cent is possible in the first quarter, thus avoiding a triple dip.”

ROSS WALKER | RBS

“With consumer price inflation likely to exceed three per cent in the next few months, and with sterling still vulnerable to a further sell-off, it is difficult to justify further QE.”