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 :
- this just enables to Government to plash more cash and appear to be doing good when actually they are causing harm
- inflation will now kick in and could spiral if the ban continues with quantitative easing
- 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