Bank hints at further rate rises

[Asterix]

What on earth are you on about ?

Numpty, so-called Black Wednesday was on September 16th 1992. Still laughing ?

[Numptycorner]

If we didn't enter at the wrong rate then, Soros would not have been able to speculate. Like I said politicians setting interest rates is a disaster waiting to happen.

[Andyw]

Politicians doing ANYTHING is a disaster waiting to happen !!

[Asterix]

Yes, but...

...this lot are so incapable of doing anything themselves, they have to set up committees and quangos so that they can in turn wash their hands of any mess that they ARE responsible for, including control of the economy (of which interest rates is a key instrument)

[mcquiggd]

John Reid will sort it all out. After a period of consultation.

[Numptycorner]

...this lot are so incapable of doing anything themselves, they have to set up committees and quangos so that they can in turn wash their hands of any mess that they ARE responsible for, including control of the economy (of which interest rates is a key instrument)

and one the BOE seems to be able to handle but politicians do not (see black wednesday). Or would you rather something like that happen again? i.e. interest rates set at a level which does not reflect the true value of the pound for political expediency!

A strong pound (currently 3rd most held currency) versus a weak one that speculators can dump on the foreign exchanges and almost bancrupt the country, you decide!

[Fleetwood]

The Tory government almost bankrupted the country, not the speculators.
Britain's gold reserves were nearly used up buying the pound. What a f uck-up that was, beaten only by Labour selling the gold reserves at $225 an ounce whan it's now $650! A fantastic performance, no doubt in the interests of "fairness".

[Numptycorner]

The Tory government almost bankrupted the country, not the speculators.
Britain's gold reserves were nearly used up buying the pound. What a f uck-up that was, beaten only by Labour selling the gold reserves at $225 an ounce whan it's now $650! A fantastic performance, no doubt in the interests of "fairness".

It always gets into the partisan argument.

IMHO History has demonstrated that the BOE setting interest rates has worked remarkably well. Governments setting artificial rates has caused problems, big problems. You cannot ignore market forces. Everyone has come to realise that.

Will the Conservatives be taking control of interest rates back from the BOE? Will they fook.

[Asterix]

Sweeping staement

Not quite. Soros was playing the pound against other currencies, so the Bank was doing the opposite (admittedly with limited success). Gold reserves were down but not depleted as you are suggesting. More to the point, you seem to be implying that later it was Brown who sold the gold cheaply, so much for the alleged 'independence' that NewLie gave them then.

[Numptycorner]

So you would ignore inflation and hold down the rates? How long would you wait before doing something?

Would you wait until unemployment started to rise significantly (and hit business with a double whammy)?