Tough decision

With inflation at a mere 3 per cent, the Bank of England contemplates raising interest rates. In 1979, inflation was admitted to be 28 per cent, and such a rate has the effect of doubling prices every 30 months. Three per cent would take about 24 years to do the same, so no real worry.

The real problem in 2017, however, is that personal debt is now so high and scarcely repayable that any interest rate increase would be disastrous, and the retired – living on a fixed income or savings – could be wiped out. Inflation might then further increase, as those with union clout receive pay rises to cope.

The Bank of England, due to previous governments treating debt as a substitute for economic growth, is now well and truly between a rock and a hard place. MALCOLM PARKIN Gamekeepers Road

Kinnesswood