TUC calls for interest rate cut after ECB warns of risks to growth from keeping rates high

Commenting on CPI falling to 2.5 per cent from 2.6 per cent (along with falls in core and services CPI measures), TUC General Secretary Paul Nowak said:  

“Inflation has shown further falls and is not only down on the month, it also remains below where the Bank of England thought it would be a year ago. 

“The Government has made the right call on big economic decisions – boosting public investment and prioritising working people’s incomes – but the Bank of England must keep playing its part too.   

“The ECB’s chief economist recently warned of the dangers of keeping interest rates high for too long.  

“It’s time for the Bank of England to act with another interest rate cut at the start of February. 

“This matters for hard-pressed working people and for businesses – more money in people’s pockets means more money spent on our ailing high streets and lower interest rates would make it easier for firms to invest. 

“After over a decade of economic failure from previous Conservative governments, restoring decent growth rates will be no small task – but it must remain a national priority. We cannot continue with the same broken status quo.”