Miliband can’t credibly complain about both inflation and growth

Today’s shocking inflation figures have sparked a fascinating debate. I laid out my take earlier, and I thought CoffeeHousers may appreciate a different perspective. Matthew Hancock MP is a member of the Public Accounts Committee, former economist at the Bank of England and former chief of staff to George Osborne. Fraser Nelson.

Last week, growth. This week, inflation. Ed Miliband is complaining about both. But the trouble is: the two can’t be taken in isolation. For the main weapon against inflation is for the Bank of England to raise interest rates. Yet the main weapon to support growth is for the Bank of England to keep interest rates lower for longer. You can’t credibly complain about both.
 
What the Government can do is ensure there’s no market panic, and keep interest rates lower than they would otherwise be, by getting the nation’s finances in order. And it can promote long term growth by making Britain competitive again: by reducing burdens on business, improving skills and education, helping businesses start, and attracting global business for example by reducing corporation tax rates.