It takes remarkable economic incompetence to demand an interest rate rise now

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I am on record as not being a great fan of central bank independence. That is because I am not keen on fundamental decision making being devolved to unelected and unaccountable authorities.

I have also argued that Bank of England independence is, in any event, a charade because the Bank of England Act 1998 allows a Chancellor to overrule it if they wish. And the Act could, of course, be changed if a government so desired.

But that said William Hague's attack on the Bank, the essence of which was that unless they increased rates to keep savers happy they shoukd lose their powers, provided some clear evidence on the folly of politicians when it comes to the economy.

Shelter suggested in 2014 that maybe one in eleven households could be tipped into mortgage default by a rate rise of 1%. I can't see why that has changed now.

And a rate rise at this precise moment  of  profound economic uncertainty when unemployment is at risk if rising, inflationary risk is real and even Tesco think that this may present many households with horrible decisions on what they can and cannot afford, would be economic madness. But that rate rise is what Hague wants to keep savers (or the wealthiest part of society) happy.

It takes remarkable incompetence to suggest such an idea at this precise moment. Hague clearly has that scale of economic incompetence.

Thankfully the Bank of England has indicated it will not be following his advice.