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Podcast: Beyond Currency
Episode: 21 March 2023 - Can the BoE afford to hike?
Description: The current situation in the banking sector is such that the Bank of England will need to consider its options very carefully when it meets tomorrow to decide about whether or not to raise short term interest rates.
David Blanchflower, a member of the Monetary Policy Committee during the 2008 financial crisis, believes that the Bank should consider radical action at this week's meeting in order to get ahead of the issue.
While the markets see either a further hike taking the base rate to 4.25%, Blanchflower believes that a cut of around 1.5% would send a positive signal that the Central Bank...