The Bank of England's decision to leave its interest rate and quantitative (QE) easing policies unchanged surprised few, but that did not stop some from second-guessing the decision.
"There's a very real danger that the decision to hold off on more QE will come to look like a missed opportunity," according to Ranvir Singh, Chief Executive Officer of RANsquawk, which provides a market feed to traders.
"If there's one thing that the Eurozone crisis has taught us, it's that inaction now can store up big problems in the future," Singh added.
Dr Howard Archer, the widely quoted economist at IHS Global Insight, reckons the decision to stand pat on QE may well have been a very close call.
"There certainly is real pressure on the MPC [Monetary Policy Committee] to revive QE - and sooner rather than later," Dr Archer maintains.
That view was echoed by Anna Leach, head of economic analysis at business lobbying group the Confederation of British Industry (CBI).
"It seems that a 'wait and see' position has been adopted for the moment. The ongoing crisis in the Euro area will continue to put pressure on fragile business conditions for the foreseeable future," Leach opined.
Bill Hubard, Chief Economist at Markets.com, the online foreign exchange and certificates for difference broker, reckons the outcome of the Greek election could have a major impact on whether the MPC shifts its position on whether to increase the size of the asset purchasing programme.
"The main factors to go ahead with additional QE include whether there is improvement in growth in the UK but also on how sticky CPI [consumer price index inflation] proves to be. On the growth front, I speculate that not many more negative data prints are required for the Bank of England's MPC to pull the trigger on further QE again," Hubard said.
For all we know, the MPC's verdict on QE may well have been on a knife-edge. All will be revealed when the minutes from the meeting will be released at 09:30 on Wednesday, June 20th.
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