Wednesday, Jan 07, 2009

The 'independent' MPC is now redundant

Telegraph: Pound stages unexpected recovery ahead of MPC meeting

Think about it objectively for a minute - what good will lower rates actually do for the economy now? Or will they just make imported goods even more expensive?

Posted by paul @ 07:30 PM (379 views) Add Comment

4 Comments

1. greytornado said...

I wonder if Brown & Darling saw that one coming? (recovery of the pound happening.) To lower interest rates further now might be a really bad idea. (Like giving someone who is showing signs of recovery from the flu, a cold bath !!)

Wednesday, January 7, 2009 08:36PM Report Comment
 

2. buctootim said...

Lower pound means

Cheaper exports, increasing demand
More expensive imports, creating inflation and avoiding damaging deflation

Wednesday, January 7, 2009 10:15PM Report Comment
 

3. enuii said...

Tim, are you from anywhere near Widnes?

What exports?

Inflation without inflation busting wages rises = lower purchasing power and more unemployment.

Further rate cuts will close this circle.

Wednesday, January 7, 2009 10:27PM Report Comment
 

4. techieman said...

unexpected?

Wednesday, January 7, 2009 10:28PM Report Comment
 

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