SMPC votes Six / Three to Hold Bank Rate in March
18 March 2019
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Shadow Monetary Policy Committee votes to hold bank rate
In its March 2019 e-mail poll, the Shadow Monetary Policy Committee (SMPC) elected, by a vote of six to three, to hold rates in March. The three favoured a 0.25% rise.
As in previous recent meetings, advocates of holding rates noted that broad money growth continues relatively weak, with some saying that the Bank should consider re-starting quantitative easing if broad money growth does not accelerate soon. Others suggested that with uncertainty about Brexit remaining high, now was an infelicitous time for a rise.
Advocates of raising rates urged that concerns about the impact of Brexit should not deter policymakers from continuing the process of monetary policy normalisation now, given that rates remain far below their equilibrium levels.
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As in previous recent meetings, advocates of holding rates noted that broad money growth continues relatively weak, with some saying that the Bank should consider re-starting quantitative easing if broad money growth does not accelerate soon. Others suggested that with uncertainty about Brexit remaining high, now was an infelicitous time for a rise.
Advocates of raising rates urged that concerns about the impact of Brexit should not deter policymakers from continuing the process of monetary policy normalisation now, given that rates remain far below their equilibrium levels.
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