The Bank of England should cut interest rates to avoid the threat of lower growth, higher unemployment and real problems for the manufacturing sector, claims a new report from the Trade Union Congress.
In the report - Cut or Bust – Why the Bank must cut interest rates in 2006 - the TUC say the arguments against an interest rate cut do not stack up when examined in depth, and could lead to up to 80,000 redundancies in the manufacturing sector. According to the report, the TUC says its assessment of GDP growth is more likely to be at the top end of the Treasury forecast in 2006, at around 2.5%, but it “critically depends on the Bank taking a more active stance on monetary policy and cutting rates in the New Year”. The opening page of the report warns without such action there is a dan...
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