BoE ‘deliberately caused Britain’s debt crisis’
Britain's current debt crisis was intentionally caused by the Bank of England, according to one of its former governors.
Lord Eddie George has said that the bank kept interest rates deliberately low in spite of the fact that it was aware this would encourage homebuyers to take out loans they could ill afford.
The former governor said that the bank "did not have much of a choice" in the issue, as it was using interest rates to prevent itself from being caught up in the global economic downturn.
Lord George told the Treasury select committee: "We had to take action that on the whole we would prefer not to - stimulating consumer demand because all the other elements of demand had fallen away.
"And we were very conscious of the fact that that could give rise to problems in the future."
In related news, the cost of living has soared to a 15-year high due to rising inflationary costs, according to the Retail Prices Index.
© Adfero LtdYou can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.