12 January 2007

SHOCK AS PUNDITS GET IT WRONG

The 0.25 percentage point increase in the base interest rate was predicted by very few commentators in the press. But all that shows is that they are hopeless: gradual hikes in interest rates, for better or worse, are what every serious economist has been expecting to continue until the housing bubble subsides. Gordon Brown will get it in the neck for it, but that really isn't the story.

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