CITY A.M. | SHADOW MPC VOTES 8-0 TO HOLD

ALLISTER HEATH | CITY A.M.
“Rates should be held and QE should not be extended even further. Even though the euro crisis is escalating, the UK financial system is holding up well. So hold, unless Italy's woes trigger a full-blown banking crisis.”

SIMON WARD | HENDERSON
“Keep Bank rate at 0.5 per cent and hold gilt purchases in reserve unless monetary trends deteriorate. Inflation is unlikely to return to target next year and QE2 may contribute to a rebound in 2013.”

GEORGE BUCKLEY | DEUTSCHE BANK
“After a larger and earlier dose of QE than expected last month, the BoE should hold its course until the £75bn of purchases are complete. More may yet be needed if the economy double-dips, but hold for now.”

VICKY PRYCE | FTI CONSULTING
“Hold but be ready for a cut and for further QE as the Eurozone crisis spreads. October manufacturing and retail surveys already suggest much weaker growth this quarter after better than expected data last quarter.”

VICKY REDWOOD | CAPITAL ECONOMICS
“We should continue with the increase in asset purchases that is now underway – and stand ready to increase the programme if, as I expect, the risks of a renewed recession continue to rise.”

TREVOR WILLIAMS | LLOYDS TSB
“QE is a pre-emptive strike against economic weakness in Europe and the UK. The economy could contract this quarter, but further QE should only be enacted if inflation falls back sharply by February 2012.”

GRAEME LEACH | IOD
“The dust needs to settle on last month's MPC decision before considering any further extension in QE. We think that time will come, but not yet. Any QE extension now might actually undermine confidence.”

HOLGER SCHMIEDING | BERENBERG BANK
“Hold rates and asset purchases. After a satisfactory third quarter, leading indicators project a renewed recession for late 2011 and early 2012. QE2 takes this into account, and may need extending if need be.”