Interest rate rise: Dangerous groupthink will cost people their jobs and homes, warns TUC

Commenting on today’s decision by the Bank of England to raise the base rate by 0.5 percentage points, TUC General Secretary Paul Nowak said:

“This interest rate hike is the result of dangerous groupthink in the Bank of England and Downing Street. Pushing interest rates so high that the economy is driven into recession will only make the current crisis worse, costing people their jobs and their homes.

“Inflation was caused by global energy shocks and government should be doing more to ensure households and businesses benefit as prices fall.

"Instead of scapegoating workers who are desperate for their pay to keep up with prices, ministers should focus on a credible plan for sustainable economic growth and rising living standards."