Opinion among financial services professionals is split over whether the Bank of England’s Monetary Policy Committee (MPC) should take further steps to stimulate the economy when it meets this week, a CISI survey shows.
Of 300 respondents to the survey, 49% feel the MPC should cut the base rate from 0.5% and extend its quantitative easing (QE) programme, in line with recent calls from the International Monetary Fund.
The remaining 51% were opposed to any loosening of monetary policy.
Among supporters of the move, one commented: “QE would help boost the economy while lowering interest rates would allow people to get back on their feet and reduce their own debt burdens.”
But among opponents, there was a view that the effect of lowering the interest rate would be minimal and further QE would fuel inflation.
“Another round of QE, which is a tool of devaluation, could help in the short term but long term we can`t just print our way to growth - that will lead to disaster,” warned a respondent.
To take part in the latest CISI survey, visit cisi.org
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Financial Services Professionals Divided Over Bank Of England’s MPC Next Move – CISI Survey
Date 03/07/2012