Opinion  

BoE’s rate cut was good for the economy

Tom Scott

I disagree with the recent criticism about the Bank of England (BoE), (FA, 8 September). Mark Carney and the BoE have proved their worth.

Their little rate cut has caused the pound to plummet, which has given our manufacturers and service sector a genuine boost. This has given the whole economy a degree of confidence it might otherwise have lacked. Remember that we were in grave danger of talking ourselves into a recession, whether or not we thought Brexit was a good idea.

My guess is that the BoE’s next move will be to raise rates back to 0.5 per cent around the end of the year. This will be seen as a vote of confidence in the economy by the bank and will get a positive market reaction. It will also calm inflation from higher-priced imports.

Article continues after advert

Whether or not you agree with the BoE, its action stands in stark contrast to the dithering ECB and the ongoing economic disaster that is the eurozone.

Tom Scott

Director,

Big River,

Worthing,

West Sussex