Commenting on the choices facing the MPC at its June 2008 meeting next Thursday, David Kern, Economic Adviser to the British Chambers of Commerce, said:
“Recent dire warnings issued by M&S have been amplified by bleak figures. House prices are falling sharply across all UK regions, and activity in the construction sector is declining at a dramatic pace. Large falls in the FTSE signal deep market pessimism. Bank shares are particularly weak, reflecting fears that a lot more bad debts are still to be revealed. The MPC cannot disregard these worsening threats to growth.