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HOW WILL THE MPC RESPOND TO INFLATION AND WEAK GROWTH?

Michael Saunders | Citigroup
“It is by no means a done deal, but we expect that the MPC will decide at the upcoming meeting that improving growth prospects and upside inflation risks require it to suspend quantitative easing – leaving intact the stimulus but not expanding it further.”

Peter Dixon | Commerzbank
“It is doubtful that the BoE will give a definitive statement that it has finished buying assets. It is more likely that the decision next week will be couched in terms of a pause, with the implicit assumption that it could step into the market at some point in the future.”

Vicky Redwood | Capital Economics
“Fears that a looming inflationary surge will prompt the Committee to start tightening policy seem overdone. The large amount of spare capacity in the economy remains top of the MPC’s concerns when it comes to the outlook for inflation further ahead.”