Quite agree with Andy -

The Bank of England has two core purposes: monetary stability and financial stability.

Monetary stability is the responsibility of the MPC. It means stable prices - low inflation - and confidence in the currency. Stable prices are defined by the Government's inflation target, which the Bank seeks to meet through the decisions on interest rates taken by the Monetary Policy Committee.

Note that there are two aspects to monetary stability - stable prices and confidence in the currency. Since mortgages and house prices don't feature in the government's chosen measure of inflation, the state of the housing market should be irrelevant to the MPC. Whereas slashing rates as some suggest would undermine confidence in Sterling, which would be in breach of the MPC's remit.

If the bursting of the housing bubble threatens financial stability then the Bank should have prevented the bubble in the first place.

Father Ignatius Brown, London, UK

yes, WHY does a drop in mortgage approvals point to a rate cut?

Has a rise in mortgage approvals, and the subsequent utterly obscene level of house prices, ever led to a call for interest rate rises????

Thought not. You all stink.

david, york,

Did a record rise in mortgage approvals result in a rate rise?Lets be symmetrical about the risks of inflation.The next move should be ti hold but I know we're in for a cut next week.After all,we must keep spending money we don't have on things we don't need.

stephen hulton, eure, france

The Bank of England is a complete joke but unfortunately not a funny one. It’s their ten-year policy of artificially low interest rates that gave birth to the housing bubble and there leads us to Northern Rock ect...

I mean inflation is clearly soaring with record oil, food and energy prices and now because an over priced housing market is losing steam its quick we must cut interest rates. Well anger doesn't even come close to how I feel as someone working six sometimes seven days a week on a low income. Inflation really hurts and those it hurts the most are those on lower incomes.

This rotten Bank of England and their paymasters the Labour government have succeeded in one thing 'the death of aspiration'. I was born here in this country but for the first time in my life I truly see no future on this island.

Ad, UK,

That Archer guy seems desperate to get rates cut, every time any information is published he pipes up with his "BOE needs to cut rates now" routine.

Ack, Tesco have run out of tomato sauce..... does that affect the need to cut rates Mr Archer?

wayne, london,

Sorry, why is it that a record drop in mortgages should point to a rate cut? Why can't the headline read "Record mortgage drop points to the fact that people have now realised house prices are unrealistically high and need to come down"?

Andy, Bath,

yes andy mpc meant to control inflation but they dont and cpi basket has been manipulated.

gilli, london,

The MPC will probably cut rates because they know that property is about the only thing you Brits do these days!

Arne Kiefert, Muenchen, Deutschland, Bayern

I don't recall rising numbers of mortgage approvals "prompting suggestions" that the BoE raise interest rates. Vested interests at work.

Eric Murray, Newbury,

The MPC's job is to control inflation not to keep an over-inflated bubble from bursting.

Andy, Burnley,