I agree with Thomas Paine and his comment at no28.
Ordinary Savers and ordinary Mortgage holders are equally badly served by the Banking System and the astonishingly narrow minded de-regulation of the same. The objectives of policy should be to safeguard Savers, Pensions and Work . Pandering to the international money markets seemingly pays very little regard to interests of the wider population of the UK and their average daily experiences and needs.
The problem is that we are all being referred to the wrong page by the narrow interests at the top which ignore the needs of the many.
For Savers why don’t the government introduce a Savings Bond for all , with a reasonable rate of interest paid this can surely be done at a lower cost to the government than what it pays to raise its borrowing through the Markets , the current system is a syphon of the hard earned wealth of ordinary people into the Global Banking Bonus pot.
2. Work. ( most people need to work to pay their Mortgage)
On the Mortgage market part of the reason interest rates are such a good control of demand is that home ownership has become the aspiration for most since the 80’s, there is already a nationalised Mortgage Bank, Northern Rock and another candidate in RBS. Why not just be honest rename them the National British first time buyers mortgage bank set them sensible lending guide lines and prevent the current position whereby another whole groups savings, represented by their investment in home ownership, are written off. Presently we have a system that has no reference point in the wider needs of the society it should be serving. The current system has us all held hostage to the fortunes of International Robber Barons, some one comments above that of course the traders love it, but I question how much it benefits the vast majority of us.
3. Savers , Pensions and Work.
There needs to be a change in priorities for those who lead our country away from Globalism and to considerations of sustainability at a national policy level. We all simply have to include measures appropriate to where we are and the direction in which we want to go not measures forced upon us designed to promote the short term paper profits of a system that simply does not take into account what as a society most agree is more important. Comparing us to China or India and their rates of growth is just not relevant. Stephanie mentions the international terms of Trade in her article the truth is international markets compare apples with oranges all the time as they are following narrow key indicators( for them) that only matter over very short term horizons( again only to them).
Perhaps Mr King is taking some wider considerations into account and is what could be termed more of the Old School on which he would have my vote on the Monetary Policy Committee every time. Maybe Mr King feels it is time for the tail to stop wagging the dog.