Thursday, September 06, 2007

Bank of England holds interest rates at 5.75%

Which is hardly a surprise as there are still major concerns over a credit crunch and banks being unwilling to lend each other money over night.

There is still the occasional flurry in the stock markets which clearly have the jitters over banking stocks.

This does leave the Bank of England with a problem though. At the moment it appears to be boxed in between the possibility that raising interest rates may cause a large crisis and not being able to raise them to deal with inflation even if it wanted to.

These clearly are not the best of times, they are not the worst either but it feels a bit like driving along a cliff edge at speed. One mistake and you are over the edge.

The BBC has this.

1 comment:

Sir James Robison said...

...still major concerns over a credit crunch and banks being unwilling to lend each other money over night...

"Still", Benedict? Think it's only just beginning.