| Topic: | Re:Re:Re:Re:Re:Re:Time to raise interest rates? | |
| Posted by: | E Yarrow | |
| Date/Time: | 24/03/09 13:54:00 |
| Stewart, My point is that keeping interest rates low is merely delaying the asset price correction. This is a political and not economic move. If inflation is already 3%, then we need to start tackling that. History shows us that inflation will run rampant. Better to have a soft landing than crash into 15% interest rates. We are a net importer, and as such a 28% drop in relative purchasing power is extremely significant, and needs addressing. It is a rock and a hard place, no doubts there. Improve the currency and face the pain or trash the currency in the vain hope you can artificially stimulate a domestic economy still suckling on debt? |