Shadow SMPC Meeting

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Attendance: Dr. Andrew Lilico, Prof. Gordon Pepper, John Greenwood, David B. Smith (Chairman), Prof. Tim Congdon, Prof. Patrick Minford, Roger Bootle, Dr. Peter Warburton, Prof. Forrest Capie, Allister Heath (observer), Prof. Philip Booth (IEA)

NEWS RELEASE

30 April 2004

For Immediate Release

Shadow MPC Votes to Raise Interest Rates

The IEA's Shadow Monetary Policy Committee (a group of leading economists that meets to monitor monetary policy and comment on other monetary matters) voted to increase interest rates at its April meeting. A number of members believed that a 0.5% immediate increase was warranted because of the strength of the housing market but, after debate, members accepted a proposal to increase rates by 0.25% to 4.25%.

The majority of members felt that there were severe dangers to the UK economy arising fr