HOW MUCH TENSION IS THERE AMONGST BANK OF ENGLAND MPC MEMBERS?
MICHAEL SAUNDERS | CITIGROUP
“Recent MPC comments hint at a vigorous debate, and some members appear to believe that a broader range of factors is behind the pick-up in inflation. If inflation expectations continue to rise then the MPC could feel obliged to hike rates to show they take the inflation target seriously.”
PHILIP SHAW | INVESTEC
“Andrew Sentance’s sentiment has not been echoed by at least some of his colleagues. After a period of pre- and post-election silence, comments earlier this week from Paul Fisher, Adam Posen and David Miles all expressed a degree of opposition towards a near-term tightening.”
SIMON HAYES | BARCLAYS CAPITAL
“We see voting skewed towards unchanged policy, with only Spencer Dale likely to join Andrew Sentance in the outright hawkish camp in the near term. But by February, sufficient evidence will have accumulated to convince a majority that tightening is not only appropriate but feasible.”