City A.M. shadow MPC votes 6-3 to hold policy

ALLISTER HEATH | CITY A.M.
“No more quantitative easing or cuts in the interest rate. The economy is showing some signs of recovery – and even if the rise in GDP is modest, the way to make it quicker is not through more monetary easing.”

GRAEME LEACH | INSTITUTE OF DIRECTORS
“No change for rates or asset purchases. We think the macro-economic outlook is slightly better so there is no need to alter anything this month.”

GEORGE BUCKLEY | DEUTSCHE BANK
“Hold. With economic growth showing signs of recovery and inflation still above the two per cent target, we do not believe further easing is needed at this stage.”

VICKY REDWOOD | CAPITAL ECONOMICS
“Hold rates but restart QE with another £50bn. The fact that the meagre 0.3 per cent rise in GDP in quarter one was considered good news shows how bad things are.”

ROBERT WOOD | BERENBERG BANK
“£50bn more QE, and implement Fed-style guidance. Commit to keeping rates low until growth rises above two per cent as long as inflation is expected to remain below three per cent.”

SIMON WARD | HENDERSON
“Hold. The economy is gaining momentum in lagged response to faster real money supply expansion. The case for additional stimulus is still weak.

HOWARD ARCHER | IHS GLOBAL INSIGHT
“Keep interest rates at 0.5 per cent but raise QE by £25bn. The economy is showing signs of improvement but it is still vulnerable and could do with more support.”

TREVOR WILLIAMS | LLOYDS BANK
“The economy is showing signs of stabilising, with modest growth of about 0.25 per cent a quarter. Early signs for quarter two suggest a similar pace. Hold rates and QE.”

ROSS WALKER | RBS
“No change. The resumption of economic growth, the persistence of the overshoot in inflation and the extension of the FLS mean there is no need to extend QE gilt purchases.”