The Bank of England’s Monetary Policy Committee today held interest rates at its record low for the 27th month in a row.

Clearly, the committee feels that its priority is the recovery and not inflation. Whilst some people believe that a base rate rise is necessary, it is the case that the current inflation is not driven by demand, but rather commodity prices and tax rises.

Do these people really expect that if the base rate rises, the Arabs will reduce their oil prices?

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