The Bank of England's monetry committee will have a difficult meeting this week when it meets to decide what will happen with interest rates this month, and the experts are divided as to what might happen.
On one side, the plunge in the housing market is calling for interest rates to be cut to ease the burden on mortgage payers and get some movement back into the property market.
On the other side, the rising cost of fuel and food is putting inflation up, well over the Bank's target of 2% to it's limit of 3%, with this month's figures yet to be released. This is seen as an indicator to increase interest rates, good news for those with savings.
Normally the rising inflation would automatically trigger an interest rate rise, but inflation is rising due to the increase in the cost of essentials, which would not be controlled by interest rises.
Whichever way the Bank of England reacts it will no doubt be seen to be doing the wrong thing. Either it will be punishing hard pressed people who have borrowed too much; it will be not looking after the economy and allowing inflation to spiral; or it will be sitting on the fence dithering!
Watch this space on Thursday!
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