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."