Bank of England to start 2013 on sidelines as economy scrapes
"I don't think that we've seen anything to substantially change the MPC's view of the economy," said Barclays economist Chris Crowe. "We are not expecting any change in policy." Although December surveys of purchasing managers pointed to a 0.2 percent dip in British economic output in the fourth quarter, the latest official data on services, industrial production and construction has been less clear-cut.
Data on Wednesday showed Britain's goods trade deficit did not narrow as much as expected, raising the risk that the economy as a whole slowed in the last quarter.
"I think the best way to describe the economy is fragile but stable and it will remain this way for the next couple of quarters," said Rob Wood, economist at Berenberg Bank. BoE policymakers will probably wait for more data before reconsidering their views on another cash injection for the economy, analysts said.
There are also early signs that a BoE scheme to increase lending to consumers and
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