Bank of England independence was no one’s first choice. Margaret Thatcher never did it, John Major preferred to devolve power to the German Bundesbank than grant it to Threadneedle Street. Because the power to set interest rates is an awesome one.
Higher interest rates are not some esoteric phenomenon, insulated from the real economy. They feed into virtually every aspect of our lives. For individuals, they mean higher mortgage payments, car payments, credit card payments. For businesses, they drive less investment, fewer new jobs, foregone wealth creation.
