Letter: Chancellor's act of 'good faith'

Sir: Diane Abbott and Robin Ramsay (Letters, 14 May) are themselves guilty of missing the point of giving the "Old Lady" her independence.

Mr Ramsay talks emotively of the sacrifice of British manufacturing in the interests of an inflation target. Manufacturers are eager for a low and sustainable level of inflation together with stable interest rates rather than large, mistimed swings in rates. Independence is a means to this end, something that is recognised by a very export-dependent German manufacturing sector.

In allowing independence, the Chancellor has recognised the Leninist principle that to destroy a liberal society you must allow the debasement of the currency and to protect it the value of the money must be stabilised.

Price and interest rate stability will remove uncertainty, increase investment, growth and jobs.

ROBERT COFIE

London W13