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ECONOMIST VIEWS: WILL THE MPC REVISE ITS GROWTH AND

PETER DIXON | COMMERZBANK
The Bank will have to raise its short-term inflation projections in the light of recent trends, and may also be forced to nudge down its GDP growth projection. It will likely paint an upbeat view of growth prospects while arguing that the current spike in inflation is only temporary.

MICHAEL SAUNDERS | CITIGROUP
The MPC’s forecasts will show a fairly strong upturn in inflation in 2010-12 (as in the November report), with annual CPI inflation spiking above three per cent in the near-term but falling back in late-2010 and slipping below the two per cent target in 2011.

JONATHAN LOYNES | CAPITAL ECONOMICS
The near-term path for inflation will be pushed higher than that published in November, the growth outlook will be adjusted down. The forecasts will be reasonably upbeat, partly reflecting the fact they are based on existing fiscal plans so don’t take account of likely post-election tightening.