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Was it right to keep the interest rate so low?

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Uploaded by on Feb 11, 2011

Jim Leaviss of M&G Investments explains why he believes the Bank of England was correct to keep interest rates at their record low of 0.5%.
Full article: http://bit.ly/e9xKls
More financial news: http://citywire.co.uk/money

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  • Temporary eh? Can temporary impacts make a difference? While I agree that he BOE have "met the mark" when it comes to inflation as measured by the ONS excluding temporary factors... is it sensible to ignore these temporary factors?

    These temporary measures devalue the purchasing power of Sterling. If Sterling is devalued by 30%... does that not make purchasers of imported goods 30% worse off?

    No.... I see input price inflation increasing...

    Meh...

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