Jim Armitage: Let's pace ourselves on rate cuts

Stability is increasing in Westminster by the hour, but the outlook for the economy remains perilously uncertain.

As the Bank of England’s survey on lending suggests today, both in the short term and further out.

We have no idea what the Brexit negotiations are going to result in next year or beyond, and even less of a clue how it will affect the economy.

In which case, why cut interest rates ever closer to zero tomorrow, leaving even less room for monetary easing for when we might really need it later?

Britain is heading into potentially brutal territory with neither map nor compass.

It makes no sense to wolf down what little grub we have in our kitbags before we’ve even started.

HSBC must be one of London’s most ungrateful companies.

It emerged this week that, at the height of the US investigation into how HSBC allowed the Mexican Sinaloa cartel to launder drug money through it, both the Financial Services Authority and the Chancellor of the Exchequer lobbied Washington hard not to launch a full-blown prosecution.

George Osborne personally wrote to both Federal Reserve chairman Ben Bernanke and Treasury secretary Tim Geithner to press the case.

Osborne even claimed the impact on HSBC of an indictment could cause a major European and Asian banking crisis.

His crucial letters were in early September 2012. Treasury records show HSBC was granted an audience with Osborne three times in July and August of that year, and a further three with Mark Hoban, financial secretary to the Treasury.

Such regular meetings with one company are unusual, but the Government appears to have been willing to listen and help.

Britain’s high-level lobbying caused such ructions in the US that the indictment was, indeed, dropped in favour of a negotiated deferred prosecution agreement, saving HSBC’s skin.

Yet how did HSBC repay the Chancellor for his efforts? By threatening to leave London for Hong Kong a couple of years later.

Did they not wonder if the Chinese politburo would have been so helpful?

Steinhoff’s deal for Poundland comes as a relief all round. Poundland investors get a 40% premium despite Brexit and the toxic 99p Stores takeover.

Steinhoff would have looked ridiculous if it had added a third failed deal to Darty and Argos.

It has saved face and, like other euro-earning predators looking at British assets, snapped up a bargain.