Shadow MPC votes to hold rates - 9th January

SMPC voted by six to three not to raise rates this month

In the January poll of the IEA's Shadow Monetary Policy Committte six SMPC members voted to hold rates while two voted for a 0.25% cut, and one voted for a 0.5% cut. The preponderance of holds provides a slightly misleading picture of consensus, however. This is because many SMPC members thought that it was inappropriate to alter rates in January, as a result of uncertainties about the strength of retail sales over the important Christmas and New Year periods, but could see a case for a more active approach in February, when the MPC will also have a new set of Inflation Report forecasts available.