25 March 2011

Low down and dirty economics

I have just about had it up to here with the continued appeals from the media to retain interest rates at the current level. The Independent is at it again this morning:
If higher borrowing costs are neither immediately necessary nor likely to bring inflation down, we should consider the effects they might produce: most notably a further decline in consumer confidence, with all the dangers that poses. Mr Dale [Bank of England economist] himself concedes he is worried about the strength of the recovery. Why risk weakening it further unless we really have to?
I am fed up getting sweeties in terms of interest on my, erm, hard- earned savings. And low interest rates do nothing to encourage the pound sterling to stay at reasonable levels. (Last night the pound was down to 1.138 euros.)

You guys who have mortgages have done pretty well over the past two years; now it's time for you to take up some of the shared pain.

So pull the finger out, Mervyn, and stick them up!

1 comment:

Pensioner said...

Too right. If only we cold get back to the halcyon seventies when interest rates were 15% and more.