Shadow MPC will recommend interest rate rise

The Sunday Times features SMPC recommendations

Economists are calling on the Bank of England to raise interest rates, the first time they have sought an increase in more than a year.

The Bank should take advantage of the lull in the eurozone crisis to start bringing rates back to normal levels, they say. Bank rate has been at 0.5% since March 2009.

The monetary policy committee (MPC) will announce its decision on Thursday and while most economists expect the rate to remain on hold, calls for an increase are growing.

The shadow MPC, which meets at the Institute of Economic Affairs, will tomorrow recommend a 0.25 percentage point rise, its first call for an increase since September 2011.

Read the full article here (£).

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