BoE Inflation Report set to widen debate

first_imgSunday 7 November 2010 8:08 pm BoE Inflation Report set to widen debate KCS-content Tags: NULL THE Bank of England’s quarterly Inflation Report will be scrutinised particularly closely by the market for clues to the future direction of British monetary policy when it is published on Wednesday. The three-way split among the Monetary Policy Committee (MPC) members has created growing uncertainty about the timing and future direction of changes to interest rates and quantitative easing. There is still a widespread expectation that a further loosening in UK monetary policy is likely, if not imminent.IHS Global Insight’s Howard Archer expects the Bank of England to raise both its near-term growth and inflation forecasts but to keep its forecasts further out unchanged. City economists also expect the central bank to leave the door open for further quantitative easing. “I expect the Inflation Report to leave the door open to renewed quantitative easing should growth falter markedly over the coming months,” added Archer.However, it is unlikely that the Bank will signal that further QE will be introduced in the very near-term, with many predicting February as a likely month. “The MPC is not in a position to signal next week that a QE extension is imminent, simply because it is not,” explains Barclays Capital’s Simon Hayes.“The November Inflation Report is expected to bear a close resemblance to that in August, perhaps indicating a small bias to loosen but with the main stress being on the heightened uncertainty surrounding the outlook,” Hayes added. The result could be that the next move in monetary policy could be in either direction.The Inflation Report may also give some clues as to whether one or more of the seven committee members that has sat on the fence until now decided to join either Andrew Sentance or Adam Posen this month. Show Comments ▼ whatsapp whatsapp Share More From Our Partners Native American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comSidney Crosby, Alex Ovechkin are graying and frayingnypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgAstounding Fossil Discovery in California After Man Looks last_img

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