Letter: Waiting on the Germans isn't news

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The Independent Online
RICHARD Thomson says that, while awaiting the Bundesbank's decision on interest rates, 'for the first time the British were brought face to face with the fact that a large part of their economic fortunes is determined by a group of bankers in Frankfurt' ('UK learns to wait on Germans', Business on Sunday, 19 July).

But in 1989 an increase in German rates was followed, in less time than it took to put the phone down, by a full 1 per cent rise in London. And our unfettered sovereignty was then in the hands of that enthusiast for 'realignment', Margaret Thatcher. At least, within the exchange rate mechanism, the differential between our interest rates and Germany's has narrowed.

Harvey R Cole

Winchester, Hants

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