Tight decision for Monetary Policy Committee?

The slowdown in employment, caused by the impact of the credit crunch, and rising fuel prices will be key factors considered when the MPC meet this week. After voting unanimously last month to cut interest rates the members will have to decide whether there is sufficient evidence of a slowdown to justify a further rate cut or whether the fear of infationary pressure results in a more cautious approach. The MPC may also have been alarmed by the increase in US unemployment, at a two year high of 5%, indicating that the world's largest economy is on the brink of recession.