With its remit to control inflation the Bank of England Monetary Policy Committee has raised interest rates 1/4% despite infation at 1.1% being much below the 2% inflation target.
The balanced interpretation seems to be that they are influenced indirectly by the renewed rise in house prices, on the grounds that this will increase domestic spending. But also everyone seems to assume that the effect of an interest rate change will only feed through in 18 months time. So the group of experts on the monetary policy committee are assuming they will be judged by bourgeois society on how smoothly they control the fluctuations of the business cycle over a time span of 1-2 years. The intention has become long term sophisticated control in contrast to shorter term political considerations which were dominant when the chancellor had the power to adjust interest rates every month. Chris Burford London
