MICHAEL SAUNDERS | CITI
Contrary to market speculation, no one voted to extend QE and we continue to regard the extension of QE as unlikely. The sum of real GDP growth and CPI inflation – a proxy for nominal GDP growth – implies that extra stimulus is not needed to keep inflation on target over time. The MPC is not really gloomy on growth.
ANDREW GOODWN | E&Y ITEM
Again the possibility of further QE was debated. But this looks like more of an attempt to present a balanced argument and avoid giving the impression of a bias to tighten, rather than a message that the MPC is moving in that direction. Further QE is only likely to occur if there are clear signs that the recovery is relapsing.
VICKY REDWOOD | CAPITAL ECONOMICS
With such big uncertainties surrounding the outlook – none of which are likely to be resolved particularly soon – it therefore looks likely that policy will be kept on hold for a while yet. Further ahead, however, policy is more likely to be loosened further than to be tightened. More QE is likely and at the very least, rates are going nowhere for a long time.