MPC member calls for interest rate cuts

A member of the Monetary Policy Committee (MPC) has called for a cut in interest rates in order to prevent a damaging economic slowdown.

Professor David Blanchflower, who sits on the committee that makes the decision on interest rates has urged his fellow committee members to vote to slash interest rates next month.

Speaking to the Guardian, Professor Blanchflower said: "The evidence from the housing market, and especially the commercial property market, is worrying. Consumer confidence is low in the UK. Interest rates are restrictive at their current levels and that is why I have been voting for cuts."

Blanchflower was the only member of the MPC to vote for interest rate cuts, with the other eight members opting to freeze the rates.

The MPC is governed by Mervyn King and meets up every month to vote on interest rates. Each member of the MPC has expertise in the field of monetary policy and economics.

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