Interest rates must come down, the CBI said this week. Associate director of economic analysis Sudhir Junankar said: `The assumption that the next move will be up should be questioned. It should be down, and soon. There are signs that the housing market is cooling off, inflation is still well within the target range, and sterling’s strength has increased.’ Junankar also expressed concern about the way companies were increasing productivity. Instead of investing in better machinery and improving productive capacity ready for an upturn in demand, they were cutting employment, he warned.