Keeping interest rates high will become a drag on growth
7 February 2024
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7 February 2024
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Matthew Lesh writes for The Times
7 February 2024
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Shadow Monetary Policy Committee referenced in The Express
The IEA’s Shadow Monetary Policy Committee has been referenced in The Daily Express after recommending that the Bank of England cut interest rates and warning that policymakers risk overcorrecting for their failure to anticipate inflation in 2021.
The article said:
“When the latest base rate decision was due to be announced, the Institute for Economic Affairs (IEA) urged a drop to ward off stagnation.
“The IEA’s Shadow Monetary Policy Committee (SMPC) feared that rates remaining at this historic high will damage the UK economy and recommends lowering them from 5.25 percent to five percent.
“Trevor Williams, who chairs the SMPC, said: ‘The latest data suggests that the economy likely avoided recession in the last quarter of 2023, but only just. At best, the UK economy grew by around half a per cent in 2023. This pace of growth offers no threat to inflation’.”
Read the full article here or on MSN.
Read more about the SMPC’s decision here.
The article said:
“When the latest base rate decision was due to be announced, the Institute for Economic Affairs (IEA) urged a drop to ward off stagnation.
“The IEA’s Shadow Monetary Policy Committee (SMPC) feared that rates remaining at this historic high will damage the UK economy and recommends lowering them from 5.25 percent to five percent.
“Trevor Williams, who chairs the SMPC, said: ‘The latest data suggests that the economy likely avoided recession in the last quarter of 2023, but only just. At best, the UK economy grew by around half a per cent in 2023. This pace of growth offers no threat to inflation’.”
Read the full article here or on MSN.
Read more about the SMPC’s decision here.
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