Michele: One in three chance of QE2 in UK by February

There is a one in three chance the Bank of England will announce a further raft of QE in its February Inflation Report, says J.P. Morgan's Bob Michele.

The CIO of the group's global fixed income and currency group also believes the US could bring in QE3 as soon as next spring if the recovery stalls, adding to the latest $600bn stimulus package. Michele, who runs JPM's Strategic Bond fund, says: "In the UK, there is a one in three chance of seeing more QE in the next quarterly Inflation Report in February. If you look at the data on growth, it is optimistic for upside. On the US he adds: "If there is not a sustainable recovery, in the spring we will be talking about QE3 in the US." The manager says economic data are not supportive ...