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Wise men urge Clarke to cut rates

Wednesday 13 December 1995 00:02 GMT
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Wise men urge Clarke to cut rates

The three "wise men" remaining in Kenneth Clarke's independent forecasting panel have urged the Chancellor to cut interest rates when he meets the Governor of the Bank of England today. Professor Tim Congdon of Lombard Street Research, Gavyn Davies of Goldman Sachs and Professor Patrick Minford of Liverpool University warn against underestimating the danger that the current slowdown could persist well into next year. In a letter to the Times, they argue that with current interest rates, the Treasury's growth forecast for 1996 is unlikely to be met. "In these circumstances the prudent measure is to move interest rates downwards in order to ensure a revival in demand."

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