Commenting ahead of the Monetary Policy Committee’s (MPC) interest rate decision today, David Kern, Economic Adviser, British Chambers of Commerce, said:

“The MPC will almost certainly keep interest rates on hold on today, at five per cent. But the MPC cannot ignore the mounting threats of falling UK house prices and worsening pressures on the global banking system. The economy urgently needs an interest rate cut to counter threats of recession.”

“With UK inflation expected to increase in the near term, the MPC may not be able to cut rates today. However, the MPC must start cutting rates in October or November, as soon as inflation peaks”.