date: 2 December 2008

embargo: 00.01hrs 3 Wednesday December 2008

TUC urges Bank of England to cut interest rates to two per cent or lower

The TUC is calling on the Bank of England's Monetary Policy Committee today (Wednesday) to cut interest rates by at least a percentage point to two per cent or lower when it meets tomorrow.

TUC Head of Economics Adam Lent said: 'With unemployment rising rapidly and inflation falling, the time for incremental cuts is over.

'The Bank must bring interest rates down to a level that will help prevent a slump in 2009. We believe this means cutting rates by at least a full percentage point to two per cent or lower.

'However, there will then be an obligation on the Government to take rapid action and encourage the banks to start lending again. Otherwise, even a bold cut will prove meaningless as bankruptcy and redundancy spreads.'

NOTES TO EDITORS:

- All TUC press releases can be found at www.tuc.org.uk

- Register for the TUC's press extranet: a service exclusive to journalists wanting to access pre-embargo releases and reports from the TUC. Visit www.tuc.org.uk/pressextranet

Contacts:

Media enquiries:
Liz Chinchen T: 020 7467 1248 M: 07778 158175 E: media@tuc.org.uk
Rob Holdsworth T: 020 7467 1372 M: 07717 531150 E: rholdsworth@tuc.org.uk
Elly Brenchley T: 020 7467 1337 M: 07900 910624 E: ebrenchley@tuc.org.uk

Press release (300 words) issued 3 Dec 2008