On credit
MOVING SOONER rather than later, the Chancellor startled one of his advisers, who had explained only that morning why such a thing could not possibly happen, and explained a few hours later that it was bad for credibility — the Chancellor's, he meant. I would have said that the Chancel- lor and Governor looked the more credible for appearing to make the move in their own time. Left to itself, the pound has a nasty way of timing these decisions for them, and only a few weeks ago it was wilt- ing in the heat of August. Like their oppo- site numbers in Washington earlier this year, they have decided that their monetary policy no longer needs to cosset the recov- ery. Indeed, they were rather quicker to make up their minds about it. As for cos- seting the party hopefuls and making the voters feel good, Mr Clarke must rely (as he said) on a recovery that can keep going, and the best he can do (as I said) is to keep out of its way. This week's budget must improve his chances. There will be one or two more budgets before the election, and the visions of sugar-plums can wait.
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