MPC torn between boom and bubble, say Lib Dems

The Liberal Democrats have described the Monetary Policy Committee as torn between a fear of extending the credit boom and causing the credit bubble to burst.

Commenting on yesterday&#39s Monetary Policy Committee minutes Vince Cable MP, Liberal Democrat shadow chancellor, says: “The minutes show that the Bank of England is concerned about the rise in debt and is contemplating interest rate increases.

“Some at the Bank believe that levels of debt are making households increasingly vulnerable.

“Gordon Brown must urgently address the failures that have allowed banks to lend irresponsibly and fuel unsustainable levels of debt.”