MPC MINUTES: HOUSEHOLD DEBT SHACKLES RATES DECISION
11.03.02am BST (GMT +0100) Wed 18th Jun 2003
|
Matthew Taylor MP, Liberal Democrat Shadow Chancellor
|
Commenting on this morning's Monetary Policy Committee minutes showing a 6-3 vote against cutting interest rates, Matthew Taylor MP, Liberal Democrat Shadow Chancellor, said:
"The MPC can't deal with Britain's boom and bust housing market. That is the Chancellor's job, regardless of whether we are in or out of the Euro."
"With no sign that exports are rebounding, investment not meeting expectations and household debt building, Britain's underlying economic problems are beginning to impact directly on businesses, and on ordinary people looking to enter the housing market.
"As the pressure on the Prime Minister intensifies, Gordon Brown's credibility is diminishing too."
ENDS
Notes to editors
1. One of the key arguments considered was whether 'the
build-up of household debt' meant that a 'reduction in interest rates risked adding unnecessarily to that vulnerability [of households to external shocks]'
2. The minutes also noted 'no signs that exports were
rebounding' and 'lower-than-expected investment'
[Print this story]
[Previous story]: MANSION HOUSE SPEECH: BROWN MUST PROVIDE ANSWERS NOT EVASION (Tue 17th Jun 2003).
[Next story]: SALES FIGURES SHOWS CHANCELLOR IS ON EVER THINNING ICE - TAYLOR (Thu 19th Jun 2003).
[Other news stories from June 2003 (39)]
Related News Stories:
Wed 24th Mar 2004:
[Eddie George Right To Be Concerned About Household Debt]
Thu 4th Dec 2003:
[Interest Rates: New Inflation Measure Will Force Rethink of Unsustainable Debt]
Wed 22nd Oct 2003:
[MPC Minutes Show Bank Of England Trapped Between A Rock And A Hard Place - CABLE]
Thu 8th May 2003:
[Business leaders are disappointed by the Bank of England's decision to hold interest rates at 3.75 per cent.]
Related Press Articles:
Mon 10th May 2004:
[There is a household debt problem]
Thu 1st Apr 2004:
[Household Debt: What is to be Done?]
Tue 3rd Feb 2004:
[There Is A Household Debt Problem]
Tue 5th Aug 2003:
[Household Debt]
Printed and hosted by Prater Raines Partners, 82b Sandgate High Street, Folkestone CT20 3BX.
Published and promoted by Liberal Democrats in Business, 4 Cowley Street, London SW1P 3NB.
The views expressed are those of the party, not of the service provider.
|