Financial crisis

THE Bank of England, government policies and lack of control have combined to ensure interest rates and fiscal policies have been dysfunctional since 2004.

This led to the financial climate that enabled the banking crash of 2008/9. The over-the-top measures of quantitative easing and ultralow interest rates that have persisted since, with the assistance of the pandemic, Putin’s aggression and Green policies, have resulted in the situation we find ourselves in.

Capitalism can’t function with interest rates so far divorced from the inflation rate. But to regularise the situation will undoubtedly cause a crisis.

JOHN PEARCE, Warwick.