Friday, February 18, 2011
Recovery will be in jeopardy
A ludicrous situation is going to happen shortly when the Bank of England is forced to raise interest rates to slow down inflation. It will effectively screw up the financial recovery!
I have no confidence in the Bank of England experts or those in the Treasury because just as they should have separated the Investment Banks from the Retail Banks when they had the ideal opportunity. They should also have separated the domestic interest rate from that of commercial borrowing. The Bank of England would then be able increase interest rates on domestic borrowing to slow down inflation whilst leaving the borrowing rate for commerce and industry at a lower rate to encourage growth.
Subscribe to:
Post Comments (Atom)
1 comment:
I could not agree more.
It is still in the National interest to separate "retail banking" from "commercial banking" it will not only assist economic recovery but prove to be a more sustainable option for the longer term.
Post a Comment