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Troops in Afghanistan, rates at home

Updated on 07 February 2008

By Newsroom blogger

Inside the newsroom meeting...

The top story today is Afghanistan. Firstly, Nato Secretary General Jaap de Hoop Scheffer has said the failure of Nato's mission in Afghanistan could result in terror attacks in Western countries.

Speaking ahead of the Nato defence ministers' meeting in Lithuania, he said: "If terrorism is not dealt with in Afghanistan, the consequences will be felt not just in Afghanistan and the region, but also in London, Brussels, and Amsterdam."

He says Nato must do more to train and equip the Afghan army if the battle is to be won. But his comments come at a time when member nations are squabbling over the contribution of troops.

The US and the UK have been urging other Nato countries contribute more troops in the south of the country - something that will no doubt be under analysis in Lithuania this week, although observers think more troops will be unlikely.

Indeed, how many more troops will the UK offer up? And how does this compare to what it is asking other member states to contribute?

At the same time Alex Thomson is in Afghanistan, and will be bringing news of Brits airlifting wounded coalition and Taliban fighters from battle zones.

Back homes and the next story to dominate discussion is a bit less life or death, although for some of grave concern: interest rates.

The Bank of England's decision is due in at 12pm. Some economists are expecting a cut - of a quarter or even a half per cent. And cash-strapped homeowners will be wishing for the same if not more. Some believe it's the only way to get out of the credit crunch that has gripped the country since Northern Rock steered out of calm waters.

But that may be forgetting that the economic uncertainty in the UK is not a standalone issue - the impending recession in America has more than a little to do with it. And banks' reluctance to lend money is tied inextricably with the collapse of the US subprime mortgage market.

Economic slowdown is a global phenomenon, and some might argue that lowering rates is at best a sticking plaster at the moment.

The other issue is how the nation perceives the economy in terms of rising or falling house prices alone - is this a safe indicator of economic health?

We'll have the full analysis at 7pm.

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