05.11.08 by Andrew Montlake

A New Generation...Now For The Hard Work

It was hard not to get dragged in to the emotional outpouring that the historic election of Barack Obama caused, not just in the US, but around the world.

US citizens have acted in their millions to make sure they restored faith in their country and sent a message to the whole world.

Coming as it does in the most difficult times for generations the Democrats are under no illusions as to the amount of hard work they have ahead of them.

One of the key issues in this, and indeed any, financial crises is a lack of confidence and consumer sentiment that makes things seem worse than they are. What we have seen with the election of Obama is a massive shot of hope, misplaced or otherwise it does not really matter.

The jubilant scenes witnessed in the US bring with them a renewed confidence. Confidence in a new generation of politian’s, voters and citizens. Confidence that the winds of change will blow through the Whitehouse, reaching around the globe with renewed vigour and purpose to restore faith in democracy and in the economy.

I know it’s all very fanciful and there are some serious issues that just plain wishful thinking will not solve overnight, but hey, you have to start somewhere.

Our own Monetary Policy Committee will meet to decide on interest rates with an announcement that many hope will be another decisive cut.

John Hawksworth, head of macroeconomics at Price Waterhouse Coopers says, "The Bank of England Monetary Policy Committee needs to cut interest rates progressively to 3% or lower in order to prepare the economy for the recovery we hope to see in 2010".

The MPC has a responsibility to keep this new wave of positivity going, and whilst another 0.5% is expected, there is a great opportunity to go even further.

Are they up the challenge? Watch this space.

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