Not for publication before: 5th February 2007
Shadow Monetary Policy Committee says: hold interest rates for now in knife-edge vote
At its latest meeting, the IEAs Shadow Monetary Policy Committee (SMPC), a group of leading monetary economists that monitors developments in UK monetary policy, voted to hold interest rates by five votes to four. Three members wanted to raise rates by 0.25% and one member wanted to raise rates by 0.5%.
A number of SMPC members were concerned about the recent rise in CPI inflation to 3%, expressing the view that the Bank of England had risked its credibility by allowing inflation to rise so rapidly and by not being sufficiently active, at a