Interest rates: Who will win betweeen Mervyn King and Andrew Sentance?
The Telegraph – 18 Feb 2011 – By Emma Rowley.
Just 24 hours after the central bank's Governor had done his best to calm market talk that he had quietly signalled three rate rises are coming this year, his most “hawkish” colleague on the committee promptly laid out his case for interest rates to go up immediately.
What is more, he questioned the accuracy of the very forecasts that explain his colleagues' decision to keep the base rate, to which other lenders' rates are tied, at its record low of 0.5pc.
Raising rates sooner rather than later would help reassure markets and the public that the committee is “not intent on ‘selling england by the pound'” Mr Sentance said, referencing the Genesis album title from the 1970s. Who will win in this battle of Mervyn King and Andrew Sentance?