New MPC member McCafferty fiercely defends independence

Tim Wallace
Follow Tim
FORMER CBI chief economist Ian McCafferty yesterday denied he is still part of the business lobby, telling members of the Treasury Select Committee that he only holds pro-business views when they match the interests of the economy.

The new Monetary Policy Committee member showed a relatively dovish stance on quantitative easing, but withdrew his earlier support for the Bank of England to purchase corporate debt as well as government bonds.

“My views are in the process of change,” he said, when asked if his opinion changed as he left the CBI.

“There was a justification at an earlier stage, but now I am of the view that Funding for Lending perhaps addresses the direct problem, which is the availability of credit for SMEs.”