The Bank of England has to be ready to cut interest rates if inflationary pressures continue to ease, the UK's leading business lobby group said today. The Confederation of British Industry conceded that the BoE will be reluctant to cut rates from the current 4.50 pct until the impact of rising energy prices and wage setting behaviour become clearer. In addition, it said recent, more positive, messages from the high street and the housing market may also provide food for thought. "But, if the better than expected inflation news continues and until the recent retail rally proves sustainable, the Bank needs to remain sensitive to the underlying fragility of the market," said the CBI's chief economic advisor Ian McCafferty.