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Quantitative easing is over-flexing the national credit card, says Redwood

The Bank of England’s quantitative easing policy is “over-flexing the national credit card”, Conservative MP and former cabinet minister John Redwood has argued.

Redwood also says it is clearly a Government-driven policy as it was the Chancellor Alistair Darling who explained the move in media coverage yesterday.

Redwood says: “Clearly he is in full knowledge of it and has given it his blessing.

“It therefore becomes his policy, whatever the truth about who first thought it should be adopted from within the Monetary Policy Committee and the Government.

“He dropped the old pretence that these are matters under independent control which we leave to the Bank and do not comment on.”

He adds: “I think inflating the deficit massively, spending huge sums on subsidising very large banks, and undertaking monetary easing increases the risks substantially.

“The Government is over-flexing the national credit card and national financial credibility.”

Redwood argues the Government should concentrate on making the banks heal themselves, instead of “shovelling obscene sums into them”.

He says: “If you are going to print some money, you need to have a prudent course for future public finances.

“The Government has not merely divorced Prudence but is holding a drink and drugs party on her grave.”


Phoenix needs to fan the flames

Welcome back to Northern Rock. Let’s hope the Government’s short-term strategy to use taxpayers’ funds to kickstart mortgage lending instead of paying back the bailout will inspire confidence across other lenders and borrowers.

FTSE closes in on 3,500 mark

The FTSE 100 is set to fall through the 3,500 barrier having closed today at 3512.09.

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Guide: Johnson Fleming produces auto-enrolment checklist

For a job as big as managing the auto-enrolment changes, it’s important to know what has been completed and what still lies in front of you to give you the reassurance that everything is in hand. Getting the planning and project management right at the outset can help you see the path ahead and ensure everyone knows their roles and responsibilities. To help with this, Johnson Fleming has produced a checklist outlining every step that needs to be taken when preparing for auto-enrolment.


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