Howard to blame for interest rate pressure wavers
Mr Osborne said it was in the Government’s “interest” to maintain rates “within the reasonable range” in order to keep growth strong.
In an interview with Sky News Mr Osborne admitted the world’s second-largest economy would soon have the chance to lift interest rates bec우리카지노aus카지노 사이트e of a decision the Bank of England had made to keep key interest rates near zero – a move that the Bank of England says would cut inflation.
The Bank of England governor said the longer term cost of such a move would be more than offset by its long-term benefits, including lowering interest payments on bank debt, freeing up cash to invest and provide jobs to the British people.
“It’s a tricky business for everybody, but our ultimate objective is to get interest rates near zero to 바카라사이트keep growth going and get Britain’s economy out of the crisis so we can get the sort of growth of growth that we need to rebuild our country, which for the first time I think in some years after we came in we have had.
“And we now get that growth but at a much lower cost.”
Mr Osborne added that the Bank is expecting its decision on Wednesday to lower the key rate to -0.5% for the first time in two decades, bringing an end to the Bank of England’s rate-setting period.
Labour’s Tom Watson said the move would mean people would start to feel the effects of rate cuts sooner than a year away – as Mr Osborne did.
Asked if this would leave the Government “wasting public money” in the short term, Mr Osborne replied: “For the UK we can be confident because we’ve seen, in one of the biggest cuts in public spending in a generation, that this will put us in a much stronger position to grow our economy in the years and years to come.”