Ratesetters expected to hold steady

Ben Southwood
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THE BANK of England’s Monetary Policy Committee (MPC) will keep monetary policy constant at its meeting concluding today, analysts have predicted.

“The modestly improved manufacturing survey for November reinforces an already strong belief that the Bank will hold off on further quantitative easing (QE) at the conclusion of their December meeting,” said Howard Archer at IHS Global Insight yesterday.

Eight of our nine Shadow MPC members rejected any further cut to interest rates, but two members thought there was a case for extra QE to boost the economy.