Ex-Chancellor Lamont: Sustained low rates 'sole reason' for 2008 crisis

Lord Norman Lamont, former Chancellor of the Exchequer, has blamed the Bank of England's low interest rate policy in the mid-2000s as the "biggest single contributory factor" of the 2008 crisis.

Speaking at the Guernsey Funds Forum this week, Lord Lamont lambasted the MPC for failing to raise interest rates earlier to prevent excessive lending. Between 2000 and 2008 interest rates never broke out of a range between 3.5% and 6%, well below previous highs seen during his tenure as Chancellor in the early 90's, when rates were as high as 13%. Lord Lamont also warned the current crisis is not over, with Europe a major risk. He said he is concerned about the eurozone which is "doomed for failure" and the "biggest threat to the world economy". His comments come amid a tough w...