Rates must remain as they are otherwise inflation will get out of hand.....if anything they could be slightly increased

C Kroustis, London, UK

I sometimes wonder how people like Martin, Brentwood can be so narrow-minded.

Didn't the media also have a massive impact on things when prices were rising with countless articles about how everyone can become rich through property?

Alex, Salisbury, UK

Think tank or Thick tank? House prices to fall by 10% by next year? They have already fallen 7% this year and were only half way through it. By end of next year full correction of falls 25% to 30% will have taken place.

des, birmingham, uk

I sometimes wonder how much our wonderful media has to do with the depth of the current “crisis” and the prevailing mood of pessimism. Look at this piece – “harsh noon verdict”, “fresh blow”, “fearful”, “struggling”, “strains” – how many more negative words can be fitted into one short paragraph?

Martin, Brentwood, UK

If you were around in the early 90's paying 15% interest rates then the debate over reducing a rate from 5% which the banks in anycase will not pass on, leaves you wholly underwhelmed

mark connelly, surbiton, surrey

Despite what this article seems to imply - the consequences of letting inflation get out of control are far worse in the long run than a recession - we don't want a return to the 70s in this regard

Dan, Winchester, UK

Raising interest rates has no effect on inflation; all it does is allow banks to take money out the economy - which they are pretty good at. If Gordon and Darling are serious about reducing spending power, they should cut benefits and freeze public sector pay - but no stomach for such strong action.

Rob, Bradford,

"A harsh noon verdict", surely the only option to prevent long-term inflation... has the Times Economics Editor turned Keynesian? :P

Scott, Oxford,

It was not a harsh verdict; it was a sensible one.
As one might expect, the pleas for cuts are coming from vested interests.
It can also be argued very convincingly, that when the rate set is based on hopelessly understated inflation, the Bank should have gone a step further and raised rates.

nic, paphos, cyprus

The BoE will have to raise rates if there are any wage pressures from the unions. They cannot afford to let the pound slide anymore & therefore exacerbate inflation. It's now up to the Government to slash public spending & ease the tax burden otherwise we face severe social unrest .

Steve Marchant, Broadhempston, UK

The right decision. House prices need to come down a lot further yet and I hope they do, so wiping the smile of all those that thought they could obscenely profiteer and get away with it. It's about time that houses were seen as homes and not as investment vehicles.

Nigel, Lincoln,

Well done for resisting the pressure to cut. Inflation needs controlled, not house prices.

SS, Edinburgh,

Go on then Mervyn, if infaltion is such a bogey man, put interest rates up. Even those people with thousands of £ stashed away will not like the inevitable recession. So Mr Bank of England grow a set and bring it on.

james mclean, edinburgh, scotland

Now I'm no ecomomist but would record fuel prices have something to do with the rise in inflation. Apparently our petrol and diesel prices are amongst the cheapest in europe before tax, so could it be that it's the level of taxation driving up inflation?

DC, Pontefract, Yorks

With the factors given (rising cost of fuel,energy, food and the fall in the value of the pound etc.), relying on the interest rate will have little impact.

With an ineffectual interest rate mechanism this govt has little else to use to regain control of the economy, other than taxation that is!

C. Hale, Worcester,

Why can't the bank see that rates need to come down and fast. Why is their inflation targeting remit so low in comparison to other countries?

The BoE encouarged us by lowering interest rates. alot of us then spent it on the high st helping the UK economy.

Now is payback time!

Paul, coventry, uk

The bank did the right thing. House prices need to come down to rational levels! It may be painful for the moment. The government had promised an end to 'bust and boom', but instead it encouraged easy money, holding the future to ransom. It will be even more painful if inflation gets out of hand.

Dick, Durham, UK

Mervyn King warned of the dangers of borrowing excessive amounts in 2004. Neither the government nor the banks took any notice. Now we are stuck with the consequences of irresponsible state and private borrowing. To lower interest rates now would be utterly irresponsible.

Steve, London,