SMPC Votes to Hold Interest Rates

At its April meeting, the IEA's Shadow Monetary Policy Committee voted to hold interest rates for the timebeing

Shadow Monetary Policy Committee Votes Against Rate Rise

For Immediate Release

At its April meeting, the Shadow Monetary Policy Committee voted against increasing interest rates.

Many of these leading economists were concerned about the long-term prospects for inflation. However, they accepted that economic activity was slowing down and that it was appropriate to ‘wait and see’ before interest rates were increased again. The slowdown may be partly attributable to past increases in interest rates, although government fiscal policy and other government policies undermining the private sector may also be to blame.

The UK economy is providing policymakers with mixed signals. Retail sales have slowed down and employment is no longer growing. Underlying GDP growth may be lower than is commonly presumed, as nearly one third of the published growth rate can be attributed to questionable productivity improvements in the public sector. Roger Bootle, Economic Adviser to Deloitte, summed this view up: “The economy is likely to be softer than most people expect. The Euro-zone remains very weak and the r