The North East Shadow Monetary Policy Committee run in partneship between NECC and the Northern Echo yesterday voted unanimously in favour of maintaining interest rates at 0.5% and quantitative easing at £325bn. Members noted increased optimism from recent surveys including NECC’s Quarterly Economic Survey and in particular strong performance in some manufacturing sectors. However, other areas including services and construction are picking up only from a low base. There was also discussion of some pay pressures emerging in high performing manufacturing sectors, but this is by no means widespread. Members felt there is still a need to maintain monetary stimulus and the case for tightening policy to combat inflation is not strong. The Northern Echo’s coverage of the meeting is here.
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