SMPC Votes Unanimously for No Change in Interest Rates

Considerable Concern for the Supply Side of the Economy Expressed by Members

PRESS RELEASE

Embargoed for 00.01 hours, 3 May 2003

Shadow MPC Votes Unanimously for No Change in Interest Rates – Considerable Concern for the Supply Side of the Economy Expressed by Members

Members of the Shadow Monetary Policy Committee, a group of distinguished economists that meets quarterly at the Institute of Economic Affairs, voted for interest rates to remain unchanged at their meeting on Wednesday 16th April. The Committee noted that demand was slowing, particularly in the private sector. Unfortunately, supply-side capacity was shrinking along with demand due to the significant transfer of resources from the private to the public sector and increased regulation of the private sector. Whilst a medium-ter