BoE can move on rates
LONDON (Reuters) - The Bank of England (BoE) has room to manoeuvre on interest rates but policy appropriate for the US economy may not be suitable here, British finance minister Alistair Darling told parliament said yesterday.
His comments suggest the government would welcome another interest rate cut from Britain's central bank but is not clamouring after the sharp rate cuts made by the US Federal Reserve.
Asked whether the British and European Union response to the credit crunch should be similar to US approach of lower interest rates and fiscal stimulus, Mr. Darling said:
"The situation is the United States economy is rather different to the situation in our economy and also in relation to other major economies in the European Union.
"In relation to what we're doing, I've said on a number of occasions because of the fact that we now have low unemployment, we've got historically low inflation, low levels of interest rates and mortgage rates, the Monetary Policy Committee has room for manoeuvre."
