I am of the opinion that a rate decrease is due if not now shortly. The concerns are over increasing fuel costs to feed through the economy but surely between 2003 to 2005 there was a dramatic oil price increase but the interest rates were a lot lower then - so why the concern now - surely there must be other inflationary concerns that we are unaware of

Paul, Mayobridge,

and if we join the euro we alot worse off that for sure

James Lawton, pontefract, UK

As everybody writing in the national press should know, the house prices are NOT included in the inflation rate calculation and so are NOT considered by the MPC.

Somehow there still seems to be the major misunderstanding that the Bank of England should solely consider house prices and keep the prices moving upwards at a rate exceeding the escape velocity from the earth's gravity.

I reckon the interest rate should be put up to double figures causing the Pound to rise and so reduce the price of imports and encourage people to save money and not borrow borrow borrow.

Bob Punder, Stevenage,

You'd think supposed professional business journalists would be aware that house prices are not within the BOE's remit. That headline is an embarrassment to both Gary Duncan and Gabriel Rozenberg

PT, Tynemouth, UK

I was lead to believe that governments had reduced their
tax take on fuel and what we are seeing is the corporation
cleaning up.

As for housing, its a dilemma in always. Mr king should not
be influenced by the propaganda put out by the housing
industry, neither should the goverment. There are two
different housing markets. The one thats making money
in a growing economy and then theres the one that the
propagandists want you to believe.

So your only getting 8% growth.... where's the crisis ?

If there are growing concerns around the credit crunch
maybe that will mean a bigger portfolio for the equity co.

Economics, usually does the last thing you think of.

M walker, Bromsgrove, worcs

I'm not sure you can "tumble" by 0.5%.

Walter Ellis, New York, USA

The BoE has no mandate over the house prices.
Asset prices are not part of the inflation indicators the Bank manages.
Stop crying for 0.5% house price drops!
how about the 100% house price gains for the past 3 years!!!!

Michele, Richmond,

The BOE will pay no attention to house prices.It is not what they are there for.There aim is to keep a so-called inflation target between 1 and 3%.They will let house prices fall just as easily as they allowed them to rise.You have been warned.

Stephen Hulton, Eure, France

The problem facing the Bank is that, if Britain's economy starts to underperform because of the 'high' interest rates we are currently experiencing, sterling may well start to weaken against the dollar and euro. This will have an inflationary impact (eg a $100 barrel of oil will, in sterling terms, become more expensive etc etc). Thus the bank will be forced to increase interest rates further to meet its one target (which is to remain within 1% of the 2% inflation rate), which will exacerbate the situation.

Outcome: Stagflation.

Tommyc, Harpenden, Herts

The treasury make tax windfalls of several millions every time fuel prices go up, therefore they should reduce fuel duty, which in turn will ease inflationary pressues. Surely common sense should prevail, not total inaction which infuriates taxpayers and simply results in opportunistic gains for the government.

steve hope, fernhill heath, worcester

The Bank of England (BOE) should be applauded for showing its independence and not being swayed by market sentiment. Inflation, not recession - an inevitable consequence of 10 years of Labour Government encouraging everyone to live on debt - is the real problem.Some inflation from increased demand for commodities is inevtitable as the developing nations expand. This could be made a whole lot worse if we had a lax monetary policy and the pound was allowed to depreciate like the dollar. In fact, I see the start of stagflation in the US and we are in real danger of having the same over here. We have mised our opportunity to join the Euro and we are now in for a rocky currency ride.

Steve Marchant, Torquay, Devon

Not gloom, but joy and relief for many of us. Repeat after me "bubbles are bad" and "irrational exuberance is bad"

Davie P, London,

It was a wise decision.Anything else would have been irresponsible.
To use the word "tumbled "when saying house prices dropped 0.5% last month is stupid. It is an emotive word and not appropriate.
You can bet your last pound that given the price of oil and basic commodities,inflation is going to jump over the next few months,and the case for upping rates will be very strong.
Oh yes,and by inflation I mean true inflation and not the doctored figures officialy given ,which are dishonestly low.
Some people will get hurt.It can not be avoided.

nic, Royan, France