Monetary Policy

Shadow Monetary Policy Committee warns of rising inflation

Financial Times letter to the editor: Shadow Monetary Policy Committee

The Shadow Monetary Policy Committee has written a letter to the editor of the Financial Times, expressing their concern at the quantity of money in the UK economy- warning the Bank of England about the risks of increasing inflation.

The Committee wrote: “We fear that inflation above 5 per cent is likely at some point in the next few years. We judge that the MPC’s decision in November 2020 to embark on another round of quantitative easing, to the tune of £150bn, has proved particularly responsible for the current excessive money growth“.

Read the full letter here.