6
Oct
Darling rejects Cable demands over Bank
Chancellor of the exchequer Alistair Darling has rejected a call to
intervene in the decision making of the Bank of England's monetary
policy committee (MPC) over interest rates.
Liberal Democrat treasury spokesman Vince Cable called on the
chancellor at the weekend to change the remit of the MPC - which
currently obliges it to concentrate on keeping consumer prices
index at or near two per cent - and instruct the bank to cut the
base rate.
Mr Cable said this would "clear the road" for a large rate cut,
something that could boost the wider economy and also the mortgage
market.
However, Mr Darling has rejected the call to intervene, saying of
the MPC's task: "That remit was designed to deal with difficult
times as well as the good times."
The debate about the remit comes at the start of a week in which
the MPC will meet to decide the interest rate.
Last week's Adfero poll of economists and financial institutions
found that seven of the 12 participants predicted a rate cut this
week.
