Thursday 20 May 2004

Monetary confusion

Interest rates could easily have increased by .50% last time.

I don't really understand this comment:

ECONOMISTS began to fret yesterday that interest rates will rise even higher than 5.25 per cent, after the Bank of England said it had considered shocking consumers with a 50 basis point hike in interest rates this month.
Surely economists should want the "correct" interest rate, and that may not necessarily be a low one. It rather looks as if those "fretting" economists haven't thought things through properly. Of course, in a sane world interest rates wouldn't be imposed by a politically appointed committee: they would be set by the market.

1 comment:

David Farrer said...

Comment made on previous template:

Andy Wood (192.168.128.185, 80.)
I bet the economists weren't fretting. 
 
That looks like a little bit of spice, added by the journalist to make the story more exciting.

21 May 2004, 09:38:05 GMT+01:00