The Bank
of England’s monetary policy committee announced its third quarter-point cut in
interest rates of the year today, signalling growing concern at the effect of
the global slowdown on Britain’s economic growth.
The
latest reduction, which had been predicted confidently by the markets, brings
rates down to 5.25 per cent. The cost of borrowing from the Bank is now the
lowest since October 1999.
Commenting
on the decision, TUC general secretary John Monks, said, “This is a very
welcome, positive move from the MPC. The cut is a sensible insurance policy
that will help protect the UK from any economic fallout from across the
Atlantic.
"Today’s
move also boosts industrial confidence in a sector which has had more than its
fair share of bad news recently. The Bank must however be ready to cut again if
there is any sign of the Eurozone economy stalling."
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