Howard Archer, chief UK and European economist at IHS Global, said despite the cheerier economic data, the March MPC decision "looks to be balanced on a knife-edge". He said the Bank of England will most likely hold fire on more QE due to the sharp weakening of the pound.
He explained last week's drop of pound against the dollar will make QE less likely:
There is a danger that doing further QE at a time when sterling is already under serious downward pressure could cause the pound to fall too far too fast, which would be both destabilising and perhaps over-stoke inflation risks.
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