As current trends are showing, there might be a need for the UK government to cut rates to allow compensation for the current trend to avoid a similar problem like the one being experienced in the US. The release of the information was taken so seriously by he financial community that it immediately reflected a drop of the value of the sterling from $1.9723 to a lower $1.99676. House prices are falling and they are going steadily down and unless something is done, they might have to do something drastic to avoid financial suicide bringing the UK besides the US.