The delusion of independance for the BoE has now been stripped away. A cut was ordered by the PM the Bank obliged, against all its instincts.
Another myth is destroyed.

andy, london,

The policies of supporting USA has brought the decline of our economy,we better have the policies only national intrusts.

wazdan, leeds, uk

Base rate cuts are making us all poorer by devaluing the pound, hence driving up food and fuel prices. Mortgagees are a minority in this country and only a minority of that minority will benefit in any way from a base rate cut.

It appears that the BoE is more intent on driving down the pound to parity with the euro, than caring about falling living standards for the majority in this country, which well get worse as the pound falls further.

Progressive rate rises to a more neutral rate of 7% to 8% are needed to protect living standards in this country.

Paul, Coventry,

The BOE may be worried about inflation (and rightly, since the effective inflation rate felt by most households over the last year has been nearer 10% than 2%) but it is surely wrong to hold off further rate cuts.
The inflation so far is not in wages fuelling a spending boom, but in prices such as energy bills and tax which are cutting the discretionary spending of most households, and this is therefore anti-inflationary.
It is one of the economic nonsenses of the BOE to believe that energy price and tax rises are by definition inflationary.
Another is that a single lever (interest rates) can control both inflation and growth.
The impact of rising costs must either involve reduced spending (and thus growth) or else wage rises to reclaim purchasing power.
Either way the BOE is in trouble. Another worry is the decoupling of mortgage rates and LIBOR from the base rate. Is their one lever to stop working too?
The only solution to all this is to take money-creation back in house.

Tony, Bristol,

they're between a rock and a hard place and their only tool is a tap... it was all going to come to an ugly end sooner or later when Labour started messing with what went into the inflation figures... inflation has been artificially low for years now with the true costs to the country/consumer not featuring in it...

paulc, gloucester,

Interest rate cuts drive the Pound down and as we have a net balance payments deficit imports will cost more than any benefits gained from exports. Any raw materials used to make those exports will also cost more. Cost of living increases will cause labour unrest and eventually wage increases. If the rest of the World is also suffering how are we going to increase exports, even if we could make them?? I do not believe that driving the currency down has any benefit.

David, Hereford, UK