Brown will back BoE rate hike

Manufacturing News, Source : TheManufacturer.com
Published : 26 Jun 2002 8:55

UK Chancellor of the Exchequer Gordon Brown has said he would back any decision by the Bank of England's monetary policy committee to raise interest rates.

The Chancellor told Radio Four's Today Programme, Brown said that he would support the Bank of England. He added that in setting monetary policy, it was important to take a long-term view and to look at all relevant factors, not just house prices.

Rising house prices have prompted the campaign to raise interest rates in the hope of preventing a property price crash. However, fears about weakness in the manufacturing sector have so far influenced the Monetary Policy Committee’s decision to keep intestest rates at a 40 year low.

The BoE has warned repeatedly that it will have to raise rates unless domestic consumption, particularly the housing market, cools.

“We will as a government continue to back the Bank in the difficult decisions that they have to make,” said Brown.

Comments on this story

click here to add a comment