Philip Shaw, chief economist at the investment bank Investec, said the Bank of England's monetary policy decisions were getting more difficult to predict.

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"It's abundantly clear the MPC feels the stance of policy is still out of kilter with economic prospects, " said Philip Shaw at Investec.

BBC: Bank considered bigger rate cut

Investec economist Philip Shaw said he still expected the deficit to overshoot the Office for Budget Responsibility's forecasts from the Autumn Statement last year.

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