The IEA’s Shadow Monetary Policy Committee’s (SMPC) November meeting – in which it urged the Bank of England to cut interest rates to avoid recession – has been featured in The Herald.

The article said:

“What is crystal clear is that, after a very long period in which the setting of interest rates had been non-contentious, the differences of opinion that now surround monetary policy decisions are striking indeed.

“While trade union Unite has been calling for a cut in interest rates – as you might expect given the pressure higher borrowing costs is putting on people dealing with an all-encompassing inflation crisis – it has not been alone.

“The Institute of Economic Affairs think tank said on November 2 that the ‘shadow monetary policy committee’ which it hosts had voted by seven to two to cut base rates. This committee, a group of independent economists, flagged risks of deflation and recession.

“Trevor Williams, chairman of the IEA’s shadow monetary policy committee and former chief economist at Lloyds Bank, said on November 2: ‘There is mounting evidence that the UK’s monetary policy is too tight and could lead to price deflation in a few years and potential recession in the interim. The Bank of England should act now by lowering interest rates’.”

Read the full article here.

You can also find out more about the SMPC’s November meeting here.