The Shadow Monetary Policy Committee (SMPC), in its second quarterly hybrid meeting of 2025, voted to reduce the Bank rate from 4.5% to 4%.
Eight members voted in favour of a cut and one for a hold.
The member who voted for a hold expressed concerns about the potential risks of cutting rates with money supply growth nearing its desired annual rate.
His stance was also influenced by the prevailing uncertainty, as he wanted the option to cut rates in the future.
The majority, however, thought that rates should be cut at the May Monetary Policy Committee Meeting (MPC) meeting because tariffs implied a tightening of economic conditions amid less fiscal flexibility in the UK, and therefore, monetary policy should be used to help buttress consumer and business activity.
Six voted for a cut of 0.5% and two for a cut of 0.25%.
Moreover, seven members voted to end or pause quantitative tightening (QT), with one voting to continue and one expressing no preference.
Furthermore, the majority thought that given the many uncertainties that could negatively impact the economic outlook, the policy bias should be geared towards easing.Â
