Thursday, February 16, 2012
ZIRP is not special help for debtors apparently
â€œI have deep sympathy with those who are totally unconnected with the origins of the financial crisis who suddenly find that the returns on their savings have reached negligible levels,â€ he told a press conference. "These are consequences of the painful adjustment prompted by the financial crisis and the need to rebalance our economy." The Bank could respond by increasing Bank rate from its current level of 0.5 per cent to 4 or 5 per cent, he said. But that would push up the exchange rate, depress investment and consumer spending â€œand we would go back into a recession.â€ â€œAll groups in society are suffering from the financial crisis,â€ Sir Mervyn said, insisting that there can be no special help for particular groups.