	u k central bank warns of excessive rate cuts bank of england governor robin leigh pemberton said lowering  rates too fast could jeopardise recent economic achievements in the u k in remarks prepared for delivery to businessmen in birmingham he said prospective returns on real investment are more favourable relative to those on financial assets than for a good number of years it would surely be foolish to put that favourable conjuncture at risk by lowering  rates prematurely or excessively he said we might enjoy a short term boost to activity but at the risk of a damaging return to the uncertainty and acrimony of high inflation he added leigh pemberton said he recognised there are some who would argue that  rates are still too high and deter investment in industry but we should not forget that less than a year ago we were intervening to support sterling and had some temporary difficulty in persuading the markets that a one pct increase in base rates to pct was a sufficient tightening of policy at the time he added base rate is currently nine pct reuter 
