I think Mervyn & Co do know this Rob, but unfortunately over the last few years the 'independant' Bank of England has shown itself to be anything but, with "No-Crash Gordon & The Masters of the MEW-niverse" applying pressure to cut rates and save his 'Miracle Economy' of ever-rising house prices!

Andy, Bath,

Low interest rates are the cause of this mess, it is pathetic to hear the same discussed as a "cure"
Rate cuts will not free up lending. Lending is not witheld due to rates, it is witheld (prudently) due to high risk of borrower default. IR cuts help like gin helps a drunk. Time for Rehab....

mike, Waikato, New Zealand

The sooner interest rates go back up again the better. We are going to have a stagnant economy with or without inflation - and better without it - until house prices are back to sensible affordable levels.

Paul, Coventry,

Rob, rising commodities are ultimately due to lack of supply. When external prices rise, people demand higher wages for the same work. That's inflation. Reductions in interest lower sterling and increase import prices further. All depressingly familiar from the '70s.

Colinc, shrewsbury,

Rising commodity prices are NOT fueling inflation,
RISING COMMODITY PRICES ARE A 'DIREC'T RESULT OF INFLATION.

As crude oil for instance is bought in US dollars, and the US is INFLATING its currency supply by ever increasing amounts to stave off a spiralling national dept.

SO OIL COST MORE

Andrew Snowden, Keighley, England

He might not be able to cut rates at all after the inflation figures are published this week.

stephen hulton, eure, france

Interest rate decisions were unaffected by the massive house price inflation in recent years due to the reliance on the CPI as a measure of inflation. Look where that got us. Unless a more realistic approach is taken towards inflation we are simply storing up more problems for the future.

Simon Bennett, Epsom, UK

Traditionally inflation was bad as it was an indication of demand exceeding supply and this drove up prices. What we are seeing is rising prices being driven by rising commodity prices - this reduces what people have to spend and is anti-inflationary - why can't Mervyn and co see this?

Rob, Melksham, UK

Inflation will not influence the decisions of the Central Bankers in the USA or Europe. Why ? Because their decision to debase their respective currencies is not negotiable. The debasement of Money will not stop.

Dan Berlinski, Geneva, Switzerland

Mr Snowden is spot on. I've yet to see any mainstream financial commentator seriously discuss the confiscatory effect of increasing the money supply over and above the growth rate of GDP. 'Pumping liquidity into the system' destroys the value of your hard earned cash and savings. It's theft!

George Thompson, Croydon,

As crude oil is purchased using US dollars, and the US is inflating its money supply by ever increasing amounts to stave of its massively out of control NATIONAL DEPT.

So the US is actually 'EXPORTING' its INFLATION to the UK/WORLD, HIDDEN WITHIN THE RISING COST OF ALL TYPES OF FUEL PRODUCTS.

Andrew Snowden, Keighley, England

The simple truth is,Central Banks do not fight inflation, they actually CREATE it.
It is nothing more than a SECRET TAX, imposed upon the middle/working class to extort their wealth from them, by the ruling ELITE.
This is achieved by keeping society dumbed down or ill informed, hence your article.

Andrew Snowden, Keighley, England

The BoE left the interest rate unchanged on thursday, the reason for this being, ' to combat inflationary pressures'.

Then on friday the BoE adds another £71.3 Billion pounds to the money supply, thereby 'INFLATING' the money supply.

Well I am very sorry, but you JUST CANT have it both ways.

Andrew Snowden, Keighley, England

For an economy largely dependent on imports of food and commodities the BoE is creating ts own degree of inflation by allowing the pound to devalue. We now need a strong pound policy to help protect us from a sterling crisis and social unrest.

Steve Marchant, Broadhempston, UK

As long as interest rate decisions are made on an official rate of inflation of 2.5%,which has no resemblance with the real inflation experienced by ordinary families,then sensible,nonpolitically motivated,corrective economic action is impossible.
Isn't it obvious?

nic, royan, france