About this site

neotherbusiness is a business blog where you can share views and opinions about business news and developments in Newcastle and the North-East.

Recent comments

Recent Posts

Tag cloud...

Sponsored links

Feeds

  • Add to:
  • icongoogle.gif
  • iconyahoo.gif
  • iconbloglines.gif
  • iconaol.gif

Blog Authors

Archives

Links

Sponsored links


Not in our best interest

Posted by Ross Smith on July 5, 2007 3:43 PM | 

It's disappointing, though not exactly unexpected, to see interest rates raised once again today - the fifth time in the space of a year.

It's understandable that the MPC has decided to do this - there are enough inflationary pressures in the economy to prompt its members to act.

The problem is that a hike in interest rates is the only tool they have at their disposal.

And while it may help put a lid on house prices and consumer spending in the over-heating South East, it also piles pressure on businesses in the North East, where the economy needs to continue growing at its recent impressive rate.

New chancellor Alistair Darling has to start pulling at some different levers, rather than leaving it all down to the MPC. Otherwise, the memory of Eddie George will begin to loom large.

Comments (0)

Post a comment

(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)