Commenting on today’s MPC decision, David Kern, BCC Economic Adviser said:"The decision is disappointing but not surprising. The MPC missed an important opportunity to underpin confidence and limit the damage to the economy. “A modest interest rate cut would have alleviated the threats to the banking system and would have helped restore the smooth flow of credit in the economy. Sterling’s recent weakness poses inflationary risks but delaying unduly a modest and much-needed interest rate cut could worsen the downturn in the economy, triggering bigger and more dangerous falls in the pound. To minimise the threats, we strongly urge the MPC to cut interest rates in February.”