Why has the Bank of England increased interest rates? It was the only option left | Michael Jacobs

The Bank has done everything to keep the failing economy moving. But this rise shows the problem lies with the government’s continued fiscal austerity• Michael Jacobs is director of the Institute for Public Policy Research’s commission on economic justiceThe 0.25% rate rise announced this morning is not a normal interest rate rise. But that is because we are living through abnormal economic times.Usually the Bank of England would raise interest rates when the economy was beginning to “overheat” – that is, when consumer and business demand was accelerating. But no one could say the economy was overheating today. Continue reading…
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