It is low interest rates [relatively free money] that has caused the problems. Why do more of the same [insanity definition]
Interest rates will rise eventually one way or another if 'free' market rules prevail.

Howard, Georgetown, Cayman Islands

Priority should be given to keeping inflation down. Inflation is already too high, leading to pay disputes, which, in turn, will lead to rising unemployment - and it takes years to bring unemployment down again.

Henry Haslam, Taunton, UK

I thought that the LIBOR rate was the paralysing factor ?

Reducing consumer interest rates would simply increase inflation, where the poorest suffer most !

Increasing interest rates would help increase consumer saving

cap, london, UK

get real peter c, I think there are more of us out here worrying about paying the mortgage than have the LUXURY of having any SAVINGS!!

j morrison, east kilbride, scotland

hyper inflation???!!!!!!!!!! now there is a scary word..........

lifestyles, habits, etc etc etc everything will change and some things we took for granted may longer be there for some of us.................who knows where this is all going?

C. Kroustis, London, UK

Interest rates are going to have to rise not fall in the medium term. Why? Becuase public spending is so high, tax revenue is down so unless they cut spending they have to raise interest rates to attract capital to plug the difference. House prices down, bank losses even worse, credit tightens

Rupert, London, UK

no raise interest rates to encourage saving

peter c, Devizes, Wessex

I think hyperinflation is an option being considered by some now.

phil, London, UK

I only earn interest my house is paid for what did rising interest rates do to my spending I had more money. The only thing that has affected everyone is Oil that's what is driving this recession but governments are hooked in deep on tax revenues no one is saying a thing.

James , Shenzhen , China

Recession or high inflation? Both are very difficult to stop once they take hold. Either choice is very damaging. It's a bit like asking if you want to die of cancer or a heart attack!

Pedro, London, UK