Commenting on the choices facing the MPC at its May 2008 meeting next Thursday, David Kern, Economic Adviser to the British Chambers of Commerce, said:  “After the much-needed interest rates cut last month to 5%, most analysts expect the MPC to wait before easing further. But this would be a mistake. Pressures on the housing market, on consumer confidence, and on the banking sector have worsened since the April MPC meeting. The threats to growth have become more acute.  “UK house prices fell further in April, recording their first annual decline in more than a decade. UK consumer confidence plunged to its lowest level since 1992. Major UK banks are being forced to raise large amounts of new capital, and reported falls in commercial property prices will aggravate the strains. “Against this unsettling background, UK businesses have remained so far remarkably resilient. If the correct policies are adopted, recession can certainly be avoided but it would be complacent to disregard the dangers facing the economy. A small cut in interest rates next Thursday, to 4.75%, would alleviate stresses in vulnerable areas and strengthen business confidence without taking undue risks with inflation.”