Thursday, September 04, 2008

Decision Day

In less than an hour the Bank of England Monetary Policy Committee will announce their decision about interest rates.

Most pundits expect them to remain unchanged. However, the decision comes against the backdrop of Darling's suicidal warning about the state of the economy over the weekend, the announcement by the OECD that we are facing recession, Brown's ineffectual economic revival package and figures released by the Halifax that show that house prices fell by 12.7% in the year to August.

Given the above, one wonders quite how bad things must become before the MPC is prompted to cutting rates.

If and when they do, it might be the time to really panic!

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