Why, hello there higher interest rates

Worse though, I do not like the pretence implicit in this relationship between the Treasury and the Bank of England. Monetary policy in the UK should be under democratic control. The suggestion that it was not was always deeply subversive, and profoundly neoliberal. It is time that this supposed power that is granted to an accountable group was brought firmly back under Parliamentary supervision.

Markets – that’s the people with the money – don’t trust politicians over interest rates and inflation. Shrug, just don’t. So, that independence of the Bank lowers the interest rate that must be paid on government debt. Shrug, just does.

So, why do we want to increase the cost of govt borrowing?

5 thoughts on “Why, hello there higher interest rates”

  1. “and profoundly neoliberal.”

    I’d rather say that monetary policy being kept as far away from any democratic meddling as possible is deeply and solidly conservative. I’d even dare say: Thradithional..

  2. I would greet parliamentary control of interest rates with the same enthusiasm as I would greet parliamentary control of my bowel movements.

    “No, you can’t go, Parliament is in recess.”

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