The Institute of Directors welcomed the MPC's decision to leave interest rates unchanged at 6 pct. A cut today would have seemed too much like a panic reaction to last week's U.S. cut, argued Ruth Lea, head of the IoD's policy unit. However, she does expect an easing in rates this year in response to a slowing economy. She expects rates to fall to around 5.5 pct by the summer and to around 5 pct by the end of the year. "Manufacturing output growth remains weak, prices inflation is still very subdued, earnings inflation seems in control and the housing market has lost much of its buoyancy", she said. She does not expect a U.S. recession, though a slowdown may hurt some exporters. "Against that Euroland should grow quite well this year and the stronger euro is welcome news to our exporters," she said. "The gloom should not be overdone."