Financial Services Professionals Divided Over Bank Of England’s MPC Next Move – CISI Survey

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