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WHAT DO YOU THINK THE MPC WILL DECIDE?

<strong>JAMIE DANNHAUSER LOMBARD STREET RESEARCH<br /></strong>&ldquo;A disappointing initial third quarter GDP estimate and a sharp drop in broad money in September gives the doves ammunition. On balance, the MPC is likely to keep the asset purchase facility unchanged next week. Expect there to be dissenters, however.&rdquo;<br /><strong><br />JONATHAN LOYNES CAPITAL ECONOMICS<br /></strong>&ldquo;With the previous extension to QE now complete and the economy still stuck firmly in recession, we expect it to announce another &pound;50bn of asset purchases over the next three months. And given the Committee&rsquo;s record of boldness when it comes to QE, we would not rule out an even bigger amount.&rdquo;<br /><strong><br />DAVID PAGE INVESTEC<br /></strong>&ldquo;Firmer short-run inflation and the drop in sterling are likely to have raised above-target inflation concerns. With house prices and other asset prices also rising much more quickly than expected, we think the MPC is likely to be wary of adding to QE. Sterling is likely to prove highly sensitive to Thursday&rsquo;s decision.&rdquo;