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Montevideo, November 18th 2017 - 06:29 UTC

Theresa May strongly defends free market capitalism during Band of England event

Saturday, September 30th 2017 - 13:27 UTC
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The Prime Minister defended free market capitalism in a speech marking 20 years since the Bank of England was given the right to set interest rates. The Prime Minister defended free market capitalism in a speech marking 20 years since the Bank of England was given the right to set interest rates.
Comments follow Labour leader Jeremy Corbyn's speech on Wednesday at his party's conference, in which he said capitalism was facing a “crisis of legitimacy”. Comments follow Labour leader Jeremy Corbyn's speech on Wednesday at his party's conference, in which he said capitalism was facing a “crisis of legitimacy”.
The Bank of England was given the independence to decide interest rates on its own on 6 May 1997 by then Chancellor Gordon Brown The Bank of England was given the independence to decide interest rates on its own on 6 May 1997 by then Chancellor Gordon Brown

Britain's Theresa May has defended free market capitalism in a speech marking 20 years since the Bank of England was given the right to set interest rates. She said Britons should never forget the value of a free market economy.

 The prime minister also restated her determination to retain a “balanced approach” to public spending despite political pressure to ease austerity.“Continuing to deal with our debts,” is the way to strengthen the economy, she said.

Her comments follow Labour leader Jeremy Corbyn's speech on Wednesday at his party's conference, in which he said capitalism was facing a “crisis of legitimacy”.

Mr Corbyn - who has consistently criticized the Conservative party's austerity program- also insisted Labour's policies were “what most people in our country actually want”.

However, the prime minister said her government would not change course. “To abandon that balanced approach with unfunded borrowing and significantly higher levels of taxation would damage our economy, threaten jobs, and hurt working people,” she said.

Mrs. May argued that Britain's flexible labor market had brought prosperity, and when countries adopted free market economics “life expectancy increases and absolute poverty falls”, she said. It was the “only sustainable means of raising the living standards of everyone in a country”, she added.

But, she acknowledged, the government needed “to be honest about where it is not currently working”.

The Bank of England was given the independence to decide interest rates on its own on 6 May 1997 by then Chancellor Gordon Brown, just days after the new Labour government took office.

Prior to that, interest rate decisions were taken by the chancellor, taking into account advice from the Bank as well as Treasury officials. That meant changes were often driven by political considerations, for example lowering interest rates after a Budget to boost the economy, or raising them immediately after a general election.

The current Bank Governor Mark Carney restated that the Bank would be vigilant to counter any economic or financial disruption from the Brexit process.

“Banks will be capitalized so that they can withstand any severe shock that could be associated with Brexit - however unlikely - and still meet demand for credit,” he said.

Categories: Politics, International.

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  • darragh

    Band of England!!! - I thought that was the Beatles

    Sep 30th, 2017 - 02:43 pm +1
  • golfcronie

    Gordon Brown ( Chancellor ) don't make me laugh, wasn't it him that sold all the gold to make ends meet and left a note to the Tories saying “ there is nothing left ” What a prat he was.

    Sep 30th, 2017 - 06:11 pm +1
  • Lucille

    The question is why is this piece appearing in Mercopenguin, a British government propaganda organ supposedly devoted to America, South America and the “South Atlantic”?

    Oct 03rd, 2017 - 02:58 am -1
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