What Should Happen To Interest Rates?

In this post, I identified 5 reasons why UK interest rates should be cut?

1. Falling inflation
2. Declining business confidence
3. Falling house prices
4. Credit crunch affecting business investment
5. Official recession and rising unemployment

There are other reasons as well for the lower interest rates.

There are some things which may make the MPC reluctant to cut rates, but, relatively they are not that significant e.g.

• falling pound making imports more expensive
• Inflation is still above target.