Interest rates 'must stay as low as possible'

Wednesday, March 3 2010

Interest rates must be "as low as possible for as long as possible", according to the shadow financial secretary.

MP Mark Hoban spoke at Liverpool's Northern Money Conference 2010 and explained that the low base rate seen recently should stay.

He explained that the economy was debt-based and this caused the financial crisis in the first place.

Encouraging people to spend money they do not have is damaging to the economy.

Mr Hoban added that it is "imperative" for the government to avoid higher rates so that families do not suffer any more than they already are.

The Bank of England is due to decide on its base rate tomorrow (March 4th). Last month it remained at 0.5 per cent - the level it was cut to in March 2009.

It is the lowest rate in the Bank's existence, which began in 1694.

Mr Hoban explained that now is a good time for people to make financial changes while the "memories of the crisis" are fresh.