Bank of England Freezes Interest Rates

Hey Man,

I am glad the Monetary Policy Committee (MPC) froze interest rates. We live in a global economy. If one part of the economy slows down, it affects the other parts as well.

In the United States, there is a current fear of a recession or slow down in the economy. The Federal Open Market Committee (FOMC) dropped interest rates the last time they met. The MPC, just like the FOMC also fear a slowdown of the economy. In the future may consider cutting rates.

The goal of course is to have job growth, and low inflation. Achieving this goal is a tough balancing act for both FOMC, and MPC. Growing the economy too fast, or too slow is not a good thing. The folks at the MPC, and FOMC get paid the big bucks is because, they find that happy medium for the economy to chug alone at just the right speed.

It seems that in this day in age of rising gas prices, and food costs, people have to make a choice between living, and paying their mortgages. That’s a tough decision to make. Mortgages versus food, and gas?

I am glad that the MPC and FOMC recognize people’s dilemma and are doing their best to help out the citizens of their respective countries. We can only hope that the economic slowdown will end soon. Seeing people lose their jobs, and not able to make payments is a terrible situation to see. Hopefully the actions of the MPC and FOMC will stimulate the economy, and put people in a better financial position.

-Samuel