Thursday, 8 January 2009

Interest rate decision

The Bank of England Monetary Policy Committee has just decided to cut interest rates by 0.5% to 1.5%. Below is the press release that we issued in advance of the decision:


Bank of England and Government dithering has deepened crisis
. . .The Government must now nationalise the banks . . .

The Monetary Policy Committee of the Bank of England will decide later today whether to cut interest rates further. The decision is expected at about midday. LEAP is arguing that the Government must stop dithering and should nationalise the banks.

John McDonnell MP, LEAP Chair, said:

"In this crisis, the Government and the Bank of England have consistently been behind the curve. The Bank of England was slow to cut interest rates and the Government's fiscal stimulus was pathetic.

"The quantitative easing has been delayed and ineffectual, and the Government is now dithering over the necessity of taking control of bank lending and borrowing. The country cannot wait any longer, we have had nine months of indecision."

Andrew Fisher, LEAP Director, said:

"Whatever decision the Bank of England makes today will be largely irrelevant.

"Until the Government takes control of the banks this crisis will continue to grow - meaning more bankruptcies, more unemployment and more repossessions."


Read John McDonnell's comments in full

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