Base rate on hold

4th August 2011

Mindful Money economist blogger Shaun Richards believes interest rates should be raised.

Shaun says on his blog: "I feel that we in the UK are facing a stagflationary scenario and have been arguing this for some time to which I am afraid there are no magic solutions only difficult questions which sometimes require difficult answers.

"I would raise UK interest-rates in response to this as a way of us beginning to edge our way out of our current problems. However there is a change in my view as I would currently only raise them to 1.5% rather than 2%. The reason for this is that the world looks like it is in a period of weak economic growth again and I feel one should respond to that. Should it be a blip then I could raise to 2% in a few months." Read more here.

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