Commenting on the choices facing the MPC at its November meeting next week, David Kern, Economic Adviser to the BCC, said:“UK annual CPI inflation fell below the 2% target in recent months. Inflation in Q3 was also below the levels predicted in the Bank of England's August Quarterly Inflation Report whilst credit conditions have become tighter since August, both globally and in the UK. It is clear that UK GDP growth, though still strong in Q3, is set to weaken more sharply than was envisaged in the August Inflation Report. “Against this background, the case for an early interest rate cut is strengthening. Most analysts still believe that the MPC will choose to postpone the necessary cut in rates.  A growing number however are now supporting our assessment that an early cut is essential, and should not be unduly delayed. The cumulative increase of five interest rate increases is now squeezing UK personal disposable incomes, and there are clear signs that the housing market is softening. Global risks are again worsening, and there are new concerns over the strength of many international banks.  “The US Fed has cut interest rates this week, even though US GDP growth was stronger than expected in Q3. On this occasion, the MPC should follow a similar policy. We urge the MPC to announce a small cut in interest rates next Thursday as further unnecessary delays could cause serious problems in 2008”