Boe And Base Rates

[DTMark]

Just a thought...

If the BOE (IMO sensibly) begin to raise the base rates or stubbornly refuse to cut them as the economy falters...

Is there a danger that our prudent Chancellor may decide to wrest control of the base rates back again and slash e.g. a full percentage point off them, much to the applause of the retailers and manufacturers, and the Daily Mail, regardless of what then happens with inflation?

[doogie]

No chance of that.

If the economy falters, he'd be much more likely to move the MPC's goalposts - i.e. to raise the MPC's 2% inflation target, forcing them to cut rates aggressively.

[mustrum_ridcully]

Just a thought...

If the BOE (IMO sensibly) begin to raise the base rates or stubbornly refuse to cut them as the economy falters...

Is there a danger that our prudent Chancellor may decide to wrest control of the base rates back again and slash e.g. a full percentage point off them, much to the applause of the retailers and manufacturers, and the Daily Mail, regardless of what then happens with inflation?

<{POST_SNAPBACK}>

Doubt it as I think Gordy will just heap ALL of the blame for any economic misfortunes on the BoE and MPC.

I wrote a few weeks ago that the BoE and MPC have been nicely set-up to act as scapegoats for Brown and Bliar.

[DoubleBubbleTrouble]

I wrote a few weeks ago that the BoE and MPC have been nicely set-up to act as scapegoats for Brown and Bliar.

<{POST_SNAPBACK}>

I'm sure you're right.

Actually I can't help but wonder if old Tony boy is trying to shaft Gordon one more time. All he has to do is hold out for 18 months or so and noone is going to want Gordon as PM... very cunning.

[MarkG]

I've been wondering that myself. Blair can blame Brown and head off to a profitable lecture tour circuit, and Brown is history.