www.vote-jonathan.co.uk

The Bank of England has increased interest rates to 5.25%, a move which took the City by surprise. Giving the Bank of England the independence to set its own rates is possibly the best thing that Labour has done in almost 10 years of government. Interest rates should never be used as a political tool to win elections.

Setting interest rates too low leads to the economy growing faster than we can cope with, and inevitably the markets correct - causing unemployment.

Setting interest rates too high leads to people being unable to pay their mortgages, falling house prices and negative equity. Businesses can’t afford to borrow in order to expand and growth of the economy is stifled.

5.25% is probably about right for the UK economy at the moment. Putting rates up or down by even a quarter of a percent has an impact on the UK economy.

Now imagine if Britain were to join the euro, with the eurozone interest rate of 3.5% a long way below the correct level for the UK.

Never again could we set the right rate for British jobs - the short-term effect would be house prices spiralling out of control. The long-term effect would be a return to the boom-and-bust economics that people still associate with the last Conservative government. Joining the euro would be worse than just losing our British pound coins or the short-term price rises by businesses exploiting the confusion; we would lose control of our own economy forever.