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FXstreet.com (Barcelona) - "Amidst questions about the state of the UK economy in 2013 we foresee a sluggish growth- Abstracting from the effect of one-off factors - such as the impact on Q4 GDP of the unwinding of the Olympics boost in Q3 - we expect sequential, underlying GDP growth to average around 1% annualized until the middle of 2013, rising to a 11/2-2% pace thereafter. The Euro area crisis remains the key risk for the UK economy." predicts Kevin Daly and Sebastian Graves of the Economics Research Team at Goldman Sachs.

As such, "The combination of sluggish growth, significant spare capacity and weak inflationary pressures will be sufficient to justify further easing, in our view. Exactly how the BoE might ease is unclear, however." they add. As a central case, we do not expect a change in Bank Rate or an additional increase in the BoE's £375bn stock of Gilt purchases. It is more likely, in our view, that any additional easing will focus on credit easing or other 'unconventional unconventional' measures than on QE.

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