The Mudcat Café TM
Thread #35616 Message #1332452
Posted By: GUEST,Terry K
19-Nov-04 - 11:46 AM
Thread Name: BS: Should UK join the Euro ?
Subject: RE: BS: Should UK join the Euro ?
Think on this - we have recently had a period of rampant house price inflation. The Government's response has been to increase the interest rate to try to slow the market down (very sensible, up to a point) and all the signs indicate that it is working. One criterion for entry into the Euro is that we need parity of interest rates with the eurozone, in other words, our interest rate should be reduced to two point something.
My question would be, what would house price inflation be like now, if we did have an interest rate of two point something?
And if we do join the Euro and suffer a similar bout of house price inflation, what would we be able to do to quell it?
Do we really want our mortgage rate to be controlled by Brussels?