The IEA Shadow Monetary Policy Committee (SMPC)’s recommendation that interest rates should be held at 4.25 per cent has been referenced in The Daily Mail.

The article said:

“There’s another powerful reason for the Bank to slow down: the recent bank failures in the US and the resulting stresses in the sector have yet to play out and there could be more withdrawals of liquidity to come.

“Indeed, the Institute of Economic Affairs thinktank worries that, as the Federal Reserve is now paying interest on deposits, it is contributing to a liquidity shortage in the economy. 

“A further interest rate rise would risk more bank failures and calls for more quantitative easing.”

The full article can be read here.