Commenting ahead of the MPC’s interest rate decision today David Kern, Chief Economist at the British Chambers of Commerce (BCC), said: 

“In the face of a worsening recession, we urge the MPC to cut interest rates by at least half a point on today. Since deflation is a distinct risk later this year, interest rates may have to be cut temporarily to almost zero.

“With UK rates at very low levels already, the focus of monetary policy must now shift towards forceful quantitative and credit easing. The main aims must be increasing the money supply and removing blockages in the credit markets.”