Monetary Policy

Interest Rate Cut Urgently Needed to Reduce Recession Risk

IEA's Shadow Monetary Policy Committee quoted in The Express

The IEA’s Shadow Monetary Policy Committee’s (SMPC) latest recommendation that the Bank of England should cut interest rates by at least 0.5% has been referenced in The Daily Express.

The article said:

“The [SPMC], a group of independent economists who shadow the Bank of England, has called for interest rates to be cut substantially and immediately.

“Dr Andrew Lilico, chair of the shadow Monetary Policy Committee and executive director of Europe economics, said: ‘The Bank of England was too slow raising rates when inflation was rising because it missed the clear message from rapid growth in the money supply data.

“‘It has made a similar mistake in recent months but in the opposite direction: money supply has contracted or grown only far too slowly for many months, yet the Bank has failed to cut rates.

“‘The consequence so far has been that inflation is well below what the Bank predicted. The consequence in the future will be inflation significantly under-shooting the target and economic growth being damaged. Rates should be cut immediately’.”

Read the full article here.

The SMPC’s latest recommendation was also referenced in The Times, The Intermediary, London Loves Business, Property Industry Eye, The Negotiator, and The Northern Echo.