ECONOMIST VIEWS: WHEN MIGHT THE MPC INCREASE RATES, IF AT ALL?

 
Julian Harris
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PHILIP SHAW | INVESTEC BANK
"I expect that we will begin to see rates go up in next year’s fourth quarter. It is likely that we will see evidence of a self-sustaining recovery, so the need for interest rates at very low emergency levels will fade. However, we are unlikely to be in for any aggressive period of tightening."

PETER SPENCER | ERNST & YOUNG ITEM CLUB
"The MPC has run out of interest rate ammunition quite early on in the recovery, and the uncertain climate will divide the committee considerably. But I’d be surprised to see rates increase, even at this point next year."

SIMON WARD | HENDERSON GLOBAL INVESTORS
"The economic news will continue to support Andrew Sentance’s argument, as inflation could hit four per cent by early next year. I have a 0.25 per cent rates hike pencilled in for March, and expect rates to have hit two per cent rate by the end of 2011."