Saturday, May 05, 2007
Happy Birthday MPC for tomorrow
Firstrung: MPC - a brief history
Interest rates have changed less frequently than in the preceding ten years. Official rates have moved on 34 occasions since the MPC first met in June 1997 compared with 46 changes in the previous decade. Interest rates have been lower and fluctuated within a narrower range during the past decade compared with the previous ten years. Official interest rates have varied between a high of 7.50% in 1998 and a low of 3.50% in 2003 since June 1997. During the decade up to the formation of the MPC, base rates peaked at 15% during October 1989 to October 1990 - twice the peak in the past ten years - and fell to a low of 5.25% during 1994.
Posted by converted lurker @ 02:15 PM (194 views) Add Comment
5 Comments
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1. Nopensionnohouse said...
Interesting to note who on the whole has been voting for rate Increases (External Members) vs Reductions (Bank Members)… Nothing to do with Brown of course!
http://www.hbosplc.com/media/includes/02_%2005_07_%2010th_%20MPC_%20Anniversary_%20(2).doc
2. Ianwestwood said...
Interesting to note who on the whole has been voting for rate Increases (External Members) vs Reductions (Bank Members)… Nothing to do with Brown of course!
http://www.hbosplc.com/media/includes/02_%2005_07_%2010th_%20MPC_%20Anniversary_%20(2).doc
3. paul said...
They are widely acknowledged as not always getting it right. August 2005 where as a bung to whingeing estate agents, they dropped by 25 basis points. In doing so, most agree that they extended and strengthened the lending boom.
Instead of a politically-influenced MPC with vested interests, we now have lots of little vested interests. And for some reason which is still not fully explained, an American.
4. Scott said...
Perhaps they did not get it all right, but in the next few months it will be events that control them, not vice versa.
5. japanese uncle said...
Autonomy for the central bank means in essence that the monetary authority is delegated to the unelected MPC without any accountability to the public, from the Treasury headed by the Chancellor who must stand the test of election on regular basis. A shrewd observation can have it that the MPC was installed simply for the purpose of creating the biggest asset bubble in the British history, in which gynormous wealth is siphoned from the middle-to-working class to the most privileged, not least the banks and financial businesses.