QE expansion not expected

Ben Southwood
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THE rate-setting monetary policy committee (MPC) will sit on its hands today, according to analysts.

Most analysts thought the outcome of February’s meeting would see the committee adopt a wait and see approach.

“It looks highly unlikely that the quarter-on-quarter drop in GDP in the fourth quarter will prompt the Bank of England into further stimulative action today,” said IHS Global Insight’s Howard Archer.

This put the MPC in agreement with City A.M.’s shadow MPC, which voted 7-2 against a change in either rates or quantitative easing policy.