April 8, 2008 / 12:28 PM / 12 years ago

Brown says low inflation means interest rates can fall

LONDON (Reuters) - Interest rates can fall because inflation is low, Prime Minister Gordon Brown said on Tuesday, two days before an interest rate decision by the Bank of England.

The government does not have the power to change interest rates, having given up that responsibility to the Bank of England in 1997, but pressure is growing on policymakers to shore up the economy in the wake of the credit crunch.

“Because we’ve got low inflation we can cut interest rates,” Brown said in an interview with the BBC.

“That’s why people are forecasting that British growth will be higher than growth in other countries who are equally affected by what is happening.”

An opinion poll on Tuesday showed Brown’s popularity is at its lowest since he took power in mid-2007.

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