‘End low interest rates now’
Friday 27th May 2011, 3:00PM BST.
In Jersey this week, Dr Andrew Sentance reiterated his view that in order to respond to rising inflation in the UK, the Bank of England needs to gradually increase the base lending rate
RECORD low interest rates should not be pegged at 0.5% any longer, according to one of nine people in the UK who has been responsible for setting them.
Dr Andrew Sentance steps down next week from the Bank of England Monetary Policy Committee and his final public engagement was a visit to the Channel Islands.
The economist has courted controversy for over a year since he started to make it clear that he no longer agreed with keeping rates at such low levels.
Inflation
He spoke to members of the Jersey Chamber of Commerce at a lunch at the Pomme d’Or Hotel on Wednesday and reiterated his view that in order to respond to rising inflation in the UK, the Bank of England needs to gradually increase the base lending rate.
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Good idea, petrol has rocketed, GST is about to increase, gas & electricity have both increased by approx 24%, wages have been frozen for 2 years, hell the mortgage is the only bill I can still afford, lets raise interest rates.
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The only problem with this is that it will break a very fragile recovery and just plunge the UK further down the road to disaster.
But then it is going to happen very shortly any way borrowing is climbing evan with the savage cuts. When you are paying a third of your tax take to foreign creditors and have sold just about every asset you have only one outcome can their be.
Total breakdown when the plebe’s in the street finally work out just how incompetent these experts are.
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He doesn’t know much about economics. Raising interests rates at such a time may well stall a very sight upturn in the UK economy and plunge the country back into recession.
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due to the debt that some are in , i am suprised that the rate has been so low for this long .
in the eighties we had ten percent on 30 day roll over accounts .
if the rate goes up , some will be well in the do -do, as they are well beyond reality.
let wait to snap up the repo bargins.
if you have the cash to spare .
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The only problem with raising interest rates for depositors is that the bankers will have less money to spend on yachts and extravagant living.
If, however, they raise interest for borrowers they might, possibly, acquire a little bit more to share with us long suffering savers.
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This guy no doubt gets paid a lot of money and does not have a mortgage.
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Low mortgage rates are one of the things that are allowing islanders to survive at present. With a 2% increase on GST and ever rising costs of living in the island surely we need some let up!!
In the past 10 years the island has lost many of its loyal local people who have moved away due to not being able to afford to live here.
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Raise interest rates and the banks over here will become the biggest land owner on the island.
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A rise in interest rates is inevitable, it is just a question of time before they start edging up.
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