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Politics News
INSTANT VIEW 3-Bank of England keeps policy unchanged as forecast
Thu, 10th Jan 2013 12:22
LONDON, Jan 10 (Reuters) - The Bank of England decided to keep its powder dry on Thursday, vot
Following are reactions to the decision:
HOWARD ARCHER, IHS GLOBAL INSIGHT
'No change, no surprise. The Bank of England's decision to hold off from further stimulative action for now at least was widely expected. The MPC currently appear to be firmly in 'wait and see' mode, regarding growth, inflation and the impact of the Funding for Lending Scheme.'
'However, pressure for further stimulative action from the Bank of England will mount if GDP did indeed suffer a renewed dip in the fourth quarter of 2012 and the economy shows little sign of real improvement early on in 2013.
'The very real risk of a triple dip recession has been highlighted by the purchasing managers' survey indicating contracting activity in the dominant services sector in December and the British Retail Consortium reporting lacklustre retail sales during the month.
'At the very least, the UK is clearly still struggling markedly to develop even modest sustained growth.'
JOOST BEAUMONT, ABN AMRO
'We expect that the central bank will refrain from further asset purchases, with the focus shifting to the Funding for Lending Scheme.
'There are early signs that this scheme is starting to bear fruit. Meanwhile, global economic conditions seem to be improving, while risks emanating from the euro crisis have diminished. Furthermore, inflation is likely to remain high for longer. '
ANNA LEACH, CBI
'A change in monetary policy was unlikely this month, given the UK economy continues to send out mixed signals.
'We're not expecting any change in monetary policy over the next few months, unless compelling evidence of a renewed downturn emerges.
'Underlying economic conditions remain fairly flat and there are early signs that credit availability is being boosted by the Funding for Lending Scheme.'
(Reporting by UK economics team) Keywords: BRITAIN BOE/DECISION
(olesya.dmitracova@thomsonreuters.com)(+44 20 7542 8051)(Reuters Messaging: olesya.dmitracova.thomsonreuters.com@reuters.net)
COPYRIGHT
Copyright Thomson Reuters 2013. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
ing as expected against buying more government bonds despite an economy on the verge of another contraction.
Following are reactions to the decision:
HOWARD ARCHER, IHS GLOBAL INSIGHT
'No change, no surprise. The Bank of England's decision to hold off from further stimulative action for now at least was widely expected. The MPC currently appear to be firmly in 'wait and see' mode, regarding growth, inflation and the impact of the Funding for Lending Scheme.'
'However, pressure for further stimulative action from the Bank of England will mount if GDP did indeed suffer a renewed dip in the fourth quarter of 2012 and the economy shows little sign of real improvement early on in 2013.
'The very real risk of a triple dip recession has been highlighted by the purchasing managers' survey indicating contracting activity in the dominant services sector in December and the British Retail Consortium reporting lacklustre retail sales during the month.
'At the very least, the UK is clearly still struggling markedly to develop even modest sustained growth.'
JOOST BEAUMONT, ABN AMRO
'We expect that the central bank will refrain from further asset purchases, with the focus shifting to the Funding for Lending Scheme.
'There are early signs that this scheme is starting to bear fruit. Meanwhile, global economic conditions seem to be improving, while risks emanating from the euro crisis have diminished. Furthermore, inflation is likely to remain high for longer. '
ANNA LEACH, CBI
'A change in monetary policy was unlikely this month, given the UK economy continues to send out mixed signals.
'We're not expecting any change in monetary policy over the next few months, unless compelling evidence of a renewed downturn emerges.
'Underlying economic conditions remain fairly flat and there are early signs that credit availability is being boosted by the Funding for Lending Scheme.'
(Reporting by UK economics team) Keywords: BRITAIN BOE/DECISION
(olesya.dmitracova@thomsonreuters.com)(+44 20 7542 8051)(Reuters Messaging: olesya.dmitracova.thomsonreuters.com@reuters.net)
COPYRIGHT
Copyright Thomson Reuters 2013. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
