Instant View - Bank of England votes against more stimulus
LONDON (Reuters) - The Bank of England opted on Thursday against pumping more cash into the fragile economy, with policymakers hoping a new scheme will boost lending and some worried about inflation.
Following are reactions to the decision:
VICKY REDWOOD, CAPITAL ECONOMICS:
"The MPC's decision to leave policy on hold today would not have been an easy one and the vote could have been quite close.
"We think that more policy stimulus will be required in the coming months - the question is whether the Committee feels it has the tools to deliver it."
HOWARD ARCHER, IHS GLOBAL INSIGHT:
"We suspect that the Bank of England's decision to hold off from further stimulus at the November MPC meeting may very well have followed a very close vote within the committee.
"We are doubtful that the decision marks the end of Quantitative Easing given that recovery currently looks fragile, feeble and far from guaranteed.
"Indeed we expect another, and likely final, 50 billion pound of QE to be enacted in the early months of 2013.
"Furthermore, we would not rule out further QE as soon as December if data and survey over the next few weeks increasingly point to renewed GDP contraction in the fourth quarter.
"Meanwhile, we remain firmly of the view that interest rates will not go below 0.50 percent. However, we do not expect any increase in interest rates for at least another two years."
ANNA LEACH, CBI:
"It is likely that some recent positive economic data and deepening scepticism within the MPC about the effectiveness of further gilt purchases have tipped the balance in favour of keeping policy on hold this month.
"Though we expect a modest pick-up in economic momentum through 2013, further QE remains on the table should conditions deteriorate, particularly if ongoing risks in the global economy remain unresolved."
- Tweet this
- Share this
- Digg this
- UPDATE 1-Don't mess with nuclear Russia, Putin says
- Ukraine seeks to join NATO; defiant Putin compares Kiev to Nazis |
- Don't mess with nuclear Russia, Putin says
- Exclusive - Over 100 Russian soldiers killed in single Ukraine battle - Russian rights activists
- Scotland's pro-independence campaign gains on final TV debate - poll