Clive Hyman's key event and opportunity blog

Bank rate announcement !!

The Bank of England today lowered base rates to 0.5 % – in my humble opinion this will not solve the credit crisis as the cuts before have not worked.  There are several issues with this move :

  1. this just enables to Government to plash more cash and appear to be doing good when actually they are causing harm
  2. inflation will now kick in and could spiral if the ban continues with quantitative easing
  3. the banks in their current guise ought to be replaced by businesses which will lend money and manage risks appropriately – I would prefer to see new banks being created with our money to do this

Let me know your views




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