The Monetary Policy Committee marches off for Cowboys and Indians

Posted on 23 April 2008 by Katie Tucker

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Bows and sucker-ended arrows from one side, hats and cap guns from the other. 

It is surprising that this month’s decision by the MPC to cut rates was not unanimous, given the desperation to ease liquidity in the market place but the monetary policy committee has parted to two camps now. This illustrates the dichotomy of the decision now facing the MPC: whether to prioritise the risk to economic growth so hinged as it is on the property downturn, or whether to stave off inflation. 

This month the two warriors in the ‘inflation control’ camp lost, and took their feathered head dresses with them, but come high noon every first Thursday of the month, we shall see whether the ‘threat to growth’ camp continues to triumph, or indeed who defects where.

 

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