NO one can accuse the Bank of England's Monetary Policy Committee of being reckless.

Its cautious approach since 1997 has helped deliver steady economic growth and the lowest inflation rates for more than a generation.

However, such a satisfactory outcome of the decision to take the determination of interest rates out of the hands of politicians has not left the MPC beyond reproach.

Indeed, on behalf of our region, we have led the criticisms, questioning the wisdom of keeping a lid on the property boom in the South-East to the detriment of hard-pressed manufacturers and exporters in the North-East.

The MPC members assemble tomorrow for their monthly meeting. Most commentators expect them to shave at least a quarter of a point from the base rate.

We have been disappointed too often to take a cut for granted. But there is no reason why the MPC should keep rates on hold, unless it is stubbornly to demonstrate its independence.

Inflationary pressures remain benign. Latest forecasts suggest the underlying rate of inflation will be at less than two per cent in the medium term. Therefore, there is no danger of interest rate cuts leading to rising prices.

With European rates still below ours and the current downward trend in the United States, Britain is out of economic sync with our competitors.

Crucially, there is an overwhelming case for a rate cut to stoke up an economy which is showing signs of flagging.

The property boom in the Home Counties, the very reason why base rates were maintained, appears to have run out of steam.

It is apparent that the MPC can heat up the manufacturing and exporting activity in regions like the North-East without re-igniting the housing market.

There have been signs of an imminent reversal in key manufacturing sectors in recent months, culminating in last week's decision by Corus to axe more than 6,000 jobs.

It is now high time for the MPC to offer a long overdue reward to those sectors and workforces who have suffered because of the imposition of artificially-high interest rates, and to demonstrate that the price paid to control inflation and property prices was a price worth paying in the long-term.

The economic logic for a interest rate cut this week is compelling. The MPC can deliver that fillip without throwing caution to the wind.