Quote:
Originally Posted by Chris
That would require direct intervention in the commercial operations of private businesses - difficult and controversial, as it would require carefully constructed primary legislation to enable it.
By altering its own interest rate the Bank of England isn’t intervening directly in anyone else’s business, but is in effect changing the terms on which it does business with others. Exploiting its unique position at the heart of the financial system ensures its actions have significant effects on the wider system.
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A touching story of course of little comfort for mortgage holders whose debt was created out of thin air, rather than a transaction between their bank and any other, or a central bank.