Blast from the past circa 1978!

Shame Joe Strummer is not around.

London calling to the underworld come out of the cupboards you boys and girls...

Im sure that was written about the undercurrent that has for the last 10 years of spending and inflation been kept well under wraps. Now what was the price of a house in the smoke then? mmmmmmmmmmmmmmmmm

Austin Tassletine, South West, UK

Can't really say much more than has already been said. This is a dangerous policy, and we should at the very least be maintaining interest rates or raising them slightly. The housing market can sort itself out. The BOE are risking companies going out of business and people losing their jobs, in which case they will not be able to afford their mortgage payments and the housing market will crash anyway.
One way or another interest rates will have to rise, because history has shown us that in economics, everything has to balance, so no matter how much Gorgon distorts the figures and the media push their own agenda, house prices WILL fall, and if the BOE drop rates, inflation WILL increase, meaning they have to raise them again.
Idiots....

Loop, Matlock, Derbys

Should we all be wishing for the Euro and not the pound?
The economy is heading for a brick wall at speed and The tax rises from April have to be pushed through what money will the govt use to bail out northern rock !!
What reserves have we got left.
Labour have and will always spend and spend and thus weaken the British Economy.
Just look at the number of jobs that are going EMI, Rolls Royce,and the building trade.
The fear of recession and the talk of recession will cause the recession to get deeper.
How the BOE and MPC think base rates drop does not make any sense to me and the average man in the street can only see price rises with food,gas,elec,petrol,and more rises to follow.
Bring on the election .

Jay, Manchester , uk

BoE mandate i thought was to control inflation and for financial stability rates should be going up! not down. It looks like the BoE has changed its mandate to support the housing market at all costs with lower rates. If this is the case then they should notify the British public that they have changed there stance so we all know where we stand.

gray, london,

Well put Rob.
The Times could do the country a service if it were to forward your comment to the relevant authorities.
If I were Prime Minister I would be encouraging the MPC to put up rates to stamp out inflation rather than see my economic legacy and my electoral chances destroyed.

James, NI UK,

If the BoE cut rates again what will happen...

The resulting currency devaluation and increased inflation will destroy the value any pension and savings you may have. Myself and alot of people like me will just not bother ever saving for the future because the Government and BoE policies just mean it isn't worth it.

You cannot run an economy based purely on spending borrowed money. We need higher interest rates to discourage debt, support the value of stirling, and channel investment into productive capital, not tie it up in unproductive bricks and mortar.

Further rate cuts will destroy our economy - we need to get back to reality.

Darren, Cheltenham,

Here we go, hold onto your hats folks, the destruction of Sterling has just started. And to think, it's all down to the fact that house prices are now so stupidly high BECAUSE they've been left out of the CPI measure since it's inception by Labour. If house price inflation had been checked by this simple tool, the debt fueled boom would have been curtailed and my savings wouldn't be in line for one hell of a beating over the next 12 months.

Rising house prices DO NOT make an economy!

Thanks, Gordon, BoE, etc...

Rob, Exeter, Devon

A VERY DANGEROUS GAME! Both the US and UK are going to allow their currencies to depreciate and drive up inflation. This will pour more liquidity into an over endebted economy and put off the urgently needed adjustment from consumption to investment.
Whilst the US can consume more home produce, the UK is more reliant on imports of food and raw materials which could trigger a sterling crisis with a 'Black Wednesday' repeat. The UK should follow the ECB model and keep inflation and hence sterling's value at reasonable levels. It is now up to the Government to cut public spending and return some confidence to the UK.

Steve Marchant, Broadhempston, Devon