THE TIMES MPC: The January verdict

How members of the independent panel of economic and financial experts voted

Sir Alan Budd

Former chief economic adviser to the Treasury and former member of the Bank of England Monetary Policy Committee (MPC)

Cut by a half of 1 percentage point

Charles Goodhart

Professor of Economics, London School of Economics, and former member of the Bank of England Monetary Policy Committee

Cut by a half point

The effective decision, in my view, rests between a cut of 1/2% and one of 1%. I would go for the more cautious option - a cut of 0.5% - for three main reasons:

(1) what has been happening, and what could happen, on the foreign exchange market;

(2) there is always a fog of uncertainty about retail sales over the Christmas holidays;

(3) by February there will be some information on the new wage round, and an opportunity for a more considered overall forecast.

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