Commenting on the MPC minutes, published today by the Bank of England, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:

"The latest MPC minutes confirm a radical change in attitude. As demand prospects in the economy have deteriorated and inflation is set to plunge well below target, the MPC correctly acknowledge the need for sharp interest rate cuts.

"Businesses are now facing acute pressures in the face of a worsening recession. We urge the MPC to persevere with a forceful line and cut rates to 2.50 per cent in December."