New Year but No Change to Monetary Policy Expected; in His Regular Preview of the Monetary Policy Committee's Meeting, Which Begins Today, IHS Global Insight Chief Economist Howard Archer Argues That There Will Be No Change in Policy in the First Month of 2010

Western Mail (Cardiff, Wales), January 6, 2010 | Go to article overview

New Year but No Change to Monetary Policy Expected; in His Regular Preview of the Monetary Policy Committee's Meeting, Which Begins Today, IHS Global Insight Chief Economist Howard Archer Argues That There Will Be No Change in Policy in the First Month of 2010


Byline: Howard Archer

THE January meeting of the Bank of England's Monetary Policy Committee (MPC) seems highly likely to see it starting 2010 as it ended 2009, by keeping interest rates down at 0.5% and the quantitative easing (QE) programme unchanged at pounds 200bn.

February, though, will be a major meeting for the MPC as the current QE programme will have ended by then, they will know whether or not the economy finally returned to growth in the fourth quarter of 2009 and they will also have the Bank of England's new GDP and consumer price inflation forecasts. The minutes of the December MPC meeting reinforced belief that monetary policy is on hold until at least February. Significantly, all nine MPC members were in favour both of keeping the QE programme at pounds 200bn and interest rates at 0.50%.

Even David Miles, who had favoured a larger QE rise to pounds 215bn in November, and Spencer Dale, who had not wanted an increase at all in November, voted for keeping QE at pounds 200bn in December - although the minutes note that "for those members who had preferred a different policy action at the November meeting, a slightly different scale of asset purchases could still be justified".

With November's pounds 25bn extension in QE planned to last through to early February and the economy looking like it has finally started growing again in the fourth quarter, there was little pressing need for the Bank of England to do anything at its December meeting and this looks like remaining the case at the January meeting.

The MPC is likely to sit tight until February when it will have both the fourth-quarter GDP data available as well as the new Bank of England GDP and consumer price inflation forecasts.

At its December meeting, the MPC considered that the medium-term outlook for both growth and consumer price inflation had not changed materially over the past month, while there had been a mixture of positive and negative developments relating to the near term. In particular the MPC noted that money supply growth had been disappointing, but they also noted that consumer spending and investment were showing signs of stabilising and the labour market had been surprisingly resilient.

Events over the past months again seem unlikely to have decisively changed the MPC's views of the medium-term outlook for growth and inflation. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

New Year but No Change to Monetary Policy Expected; in His Regular Preview of the Monetary Policy Committee's Meeting, Which Begins Today, IHS Global Insight Chief Economist Howard Archer Argues That There Will Be No Change in Policy in the First Month of 2010
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.