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16th April 2019: 

The Institute of Economic Affairs’ Shadow Monetary Policy Committee (SMPC), of which both our Director, Dr Juan Castaneda and our Chairman Professor Tim Congdon are members of, convened in April for the second time this year to discuss the monetary policy of UK.

The decision to hold current rates passed by a narrow margin of 5 against 4, where Dr. Juan Castaneda argued against a 1/4 point rise in the base rates:

‘Juan Castaneda said that he appreciated the discussion about the extraordinarily low level of nominal interest rates. But he could not support a rise in rates in the current monetary environment. All the forecasts are for inflation to remain in the region of 2%. As broad money growth (M4x) has been decelerating in recent months (growing at only 2% annually according to the latest, February 2019, data), he said that there are no inflationary pressures in the medium term, so why change interest rates’.

Further details and the full meeting minutes can be accessed here.