CITY A.M. | SHADOW MPC VOTES TO HOLD RATES

ALLISTER HEATH | CITY A.M.
“Markets are already providing a degree of tightening, with some banks putting up mortgage rates. This is good news and means the MPC should stay put this month. There are signs the economy is recovering.”

SIMON WARD | HENDERSON
“Stop QE but offer ECB-style medium-term funding support to banks – the current policy of forcing banks to deleverage while trying to offset the economic consequences with QE is damaging.”

GEORGE BUCKLEY | DEUTSCHE BANK
“With £50bn of additional asset purchases in progress, no additional policy changes will be required this month. The next key decision will be in May following the end of the current asset purchase programme.”

TREVOR WILLIAMS | LLOYDS
“It looks as if the UK economy will avoid a technical recession, but the fact that Bank rate is still at 0.5 per cent after three years this month is testimony to the problems that persist – so for now, keep rates on hold.”

VICKY REDWOOD | CAPITAL ECONOMICS
“Continue with the £50bn of QE started last month. There are already tentative signs that the recent pick-up in the recovery is losing steam again, suggesting that the economy still needs monetary policy support.”

GRAEME LEACH | IOD
“Nothing needs to change this week on either interest rates or asset purchases. All eyes need to be on the money supply for evidence of expansion”

HOLGER SCHMIEDING | BERENBERG BANK
“Hold rates. Indicators continue to project a return to modest growth after a mild recession. Inflation has fallen back sharply, though the recent rise in oil prices clouds the near-term outlook for growth and inflation.”

ROSS WALKER | RBS
“The recent improvement in the survey data provides some encouragement – and is consistent with unaltered policy settings – but will need to be sustained for some time for a withdrawal of stimulus to be warranted.”

VICKY PRYCE | FTI CONSULTING
“Hold rates. The UK might escape a further fall in GDP this quarter and high oil prices may push inflation higher – but Eurozone figures are still weak and the contagion from Greece remains a real possibility.”