ECONOMISTS’ VIEWS: SHOULD THE MPC INTRODUCE MORE QE?
PHILIP RUSH | NOMURA
“It is good to have it on the table and no benefit in ruling out the possibility. There is a weak case for further easing compared even with last year, though, when the MPC backed off from it. Pursuing an expansionary policy when interest rates have not yet peaked would be a risky thing to do.”
HOLGER SCHMIEDING | BERENBERG
“The data is not yet clear enough to take action. I expect they will ‘do a Bernanke’ and suggest further QE is possible, perhaps with a few arguments for it. There is no lack of liquidity in the UK banking system, so I have grave doubts about whether more QE is appropriate right now.”
GEOFFREY WOOD | CASS BUSINESS SCHOOL
“More QE would be inflationary, and inflation is already twice its target. The MPC has been wrong about inflation for over two years now, and always in the wrong direction. It is a silly idea to loosen policy further – expecially as the governor says inflation is the main factor squeezing living standards now.”