Rate cut stirs economist's anger - papers 18 August

The Daily Telegraph quotes Tim Congdon, former economic adviser to the Treasury, as stating the fact the majority went against governor Mervyn King in voting for a 0.25% cut to the base rate shows other members have failed to grasp the significance of ongoing inflationary pressures. "The MPC has done a good job over the years but they cut rates this month simply because the market expected it and the market was wrong to expect it, given what is going on in the economy," Congdon says. ”I do not understand how the MPC has not seen inflation coming. It is not difficult - it was clear to ...