Inflation will destroy whatever slim hope many people have for a half-decent pension (a recession is just a short term problem by comparison that benefits the frugal - both corporations and consumers).

The BoE must stand firm and raise rates if necessary (as urged by the CEO of HSBC this week).

Huw Sayer, Norwich, England

High interest rates are no more a cure for inflation than bloodletting was for fever. Interest is a cost like any other and must be reflected in prices. See J M Keynes, Treatise on Money, Vol Two, page 198. Keynes kept Bank Rate at 2% during war. Inflation was 1.8%.

Geoff Gardiner, Swindon,

The BoE sent out a clear message in Aug 2005: Interest rates will always be cut to support continued house price inflation...keep buying property, we will never let prices drop!

2005 could have been the soft landing we hoped for. However, nu-labour and their BoE cronies but an end to that!

A Harris, Kettering, UK

The 'independent' BoE's disastrous Sterling devaluation policy is hurting everyone in the country, except maybe the super-rich who are immune to food and fuel price inflation. The base rate will now need to go higher than it otherwise would have done had the BoE not started its rate-cutting folly.

Paul, Coventry,

Rates should have been increased in 2005 when the consumer debt mountain reached £1 trillion.What did the BOE do on August 2005?They cut them and repeated this mistake in December 2007.Nobody can honestly say that they need to be cut again.They need to rise next week by at least 0.5%,possibly 0.75%.

stephen hulton, eure, france

BoE needs to raise IRs to support the Pound and make imported products cheaper again. Ignore the property cheerleaders as they've had 300% gains over the last decade Those greedy, greed monkeys should've put away some cash for a rainy day - or not let house prices soar away in first place.

Rob, Honiton, UK

Sweet lord above, does everyone not realise by now that this is the reality check that will bring most people who live to spend back from the edge of insanity.
For years we have all been guilty of throwing out large vast amounts of food which was bought but never used, while poorer nations starved.

william thomson, lincoln, u k

HI Sam, Don't forget the Bank sometimes does things it does'nt want to, but on interest rates it does do what it wants.

Mike, Leeds

M D Hargreaves, LEEDS, West Yorkshire

Sterling crisis here we come! The BoE need to follow the ECB and confirm a strong stance against inflation. In a global market the banks are not taking notice of bank rate as they can lend their (pardon our) money in stronger currency areas with a real rate of return.

Steve Marchant, Broadhempston, UK

If the BoE cuts rates next week, then we know that GB is in control of the bank's decisions, and we're all doomed, I tell yer, doomed.
The rates have to increase, and makes no odds to the mortgage payers, as the mortgage rates are off on tangents unlinked to the base rate.

Np, Cornwall, UK

Don't be silly.

Inflation is only 3%.

Yeah, right. And I am brother to a man whose son is Netherlandic.

W Smith, Manchester,

Surely the first sentence is back-to-front and I'm not sure why the BoE is alarmed, it's been the one printing all that extra money!

Sam, London,

hmmm.... something else that's the same as the early 1990's?

There appears to be a pattern developing here that even the most myopic disbeliever in a house price crash may be able to detect!

Alex, Salisbury, UK