Outlook: Interest rates
Wednesday 08 September 1999
It is a decision that will play to the gallery. Business organisations and unions will acclaim it. And Nationwide will cheekily be able to pretend the Bank of England has made a lower mortgage rate possible, having joined other lenders in not passing on to its customers the last official rate cut.
But will it be the right decision? In his memoirs, the former chancellor Nigel Lawson excuses himself from failing to stay the boom of the late 1980s by claiming that none of the official statistics indicated there was going to be one. With the benefit of hindsight, he says, he should have paid more attention to the housing market. It scarcely needs pointing out that once again housing is flashing amber.
While it is true, as manufacturers complain, that industry is still subdued, their lobbying misses the point. To raise interest rates by a small amount in the next few months would not be to punish northern industrialists for the economic profligacy of southern home-buyers, but rather to save them from worse pain later.
- 1 BBC told new political editor must be 'impartial' with Nick Robinson reportedly stepping down
- 2 Number of young homeless people in Britain is 'more than three times the official figures'
- 3 The map showing the most dangerous tourist destinations in Europe, according to the Foreign Office
- 4 The biggest first date turnoff has been revealed
- 5 German man found living with 300 rats in tiny apartment
BBC told new political editor must be 'impartial' with Nick Robinson reportedly stepping down
Humans of New York image of crying gay teen receives best response yet from Ellen DeGeneres
Isis propaganda video shows 25 Syrian soldiers executed by teenage militants in Palmyra
Number of young homeless people in Britain is 'more than three times the official figures'
Budget 2015: George Osborne to axe subsidies for higher income earners in social housing
More Britons believe that multiculturalism makes the country worse - not better, says poll
Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
Greece crisis: IMF was pushed around by Angela Merkel and Nicholas Sarkozy – and now it is being humiliated
'I wish the BBC would stop calling it Islamic State' – David Cameron unleashes frustration at broadcaster
Forget little green men – aliens will look like humans, says Cambridge University evolution expert
Girl, 7, stares down hate preacher at Ohio festival with pro-LGBT rainbow flag gesture
iJobs Money & Business
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...
£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...
£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....
£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...