Originally posted by AtW
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Rate decisions were not made by HMG but by the MPC, and this has been the crux of the problem. Fine when things were going well, but the MPC was fixated by inflation up until 2 months ago. Rates should have been drastically reduced a year ago, and a competent government would have done it.
If we were in the Euro our recession would be much worse because we could not act in our own best interests by lowering or raising our interest rates. I repeat....Joining the Euro would be a massive mistake for this reason.
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