The Government Should Be Responsible for Setting Interest Rates in the Uk

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“The government should be responsible for setting interest rates in the UK." The rate of interest is the charge for borrowing money and the amount paid for lending it, therefore the bank of England should set the rates because they handle all of the money within the UK. As the bank of England is banker to the Government and all other banks, it is able to forecast accurately the pattern of the way the money of the Country flows between the Government's accounts in one way and the commercial banks on the other, and can act to balance the accounts of both or smooth any imbalances which arise. Therefore, due to this more unbiased and independent view, it should be the Bank of England who set the interest rates. The government should not be setting interest rates because they are too biased. The politicians are too focused on gaining votes in the public elections and therefore would only say what the people want and will win them votes rather than the actual policy which the Country needs. The Bank of England are a skilled workforce who can be trusted in this area because they understand how the Countries economic growth is moving, and although the government may understand the Countries economic growth they may take other things into account such as foreign influences or have unbalanced views due to the voting of the general elections. At the end of the day the Bank of England do not have to win any votes and are therefore much more impartial and will not be swayed to what the public want. However, it can be argued that the government would do the best for the Country whether they wanted to win votes or not because they do not want to undergo the threat of putting the Country in a downwards spiral. By promoting the policies which will win them votes would jeopardise the UK or possibly even the World through a ripple effect and although it can be argued that the

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