Commenting ahead of the MPC’s interest rate decision on Thursday, David Kern, Economic Adviser to the British Chambers of Commerce, said:
“The MPC will almost certainly keep interest rates on hold on Thursday. But the economy urgently needs an interest rate cut to counter threats of recession. The MPC cannot ignore the dangerous effects of rising insolvencies, falling house prices, and worsening pressures on the banking system.“With UK inflation expected to increase above 4.5 per cent in the next few months, the MPC may not be able to cut rates immediately. But as soon as inflation peaks later in the autumn, the MPC must start cutting interest rates without delay."