TUC: Low inflation green lights further rate cuts

7 Nov 2024 01:21 PM

TUC General Secretary Paul Nowak commented on today’s (Thursday) decision by the Bank of England’s Monetary Policy Committee to cut the rate of interest to 4.75 per cent

“Today’s rate cut was the right decision, and the Bank of England should keep moving with further reductions.

“With inflation now below the government’s target ongoing cuts will support the economy and relieve cost of living pressures on households and businesses.

“It’s good that the Bank’s forecast has recognised gains to growth from October’s Budget.

“With increased investment, stronger public services and lower interest rates, the process of repairing and rebuilding Britain has begun.”

Editors note

The Bank of England has said that the combined effects of the measures announced in Autumn Budget 2024 are provisionally expected to boost the level of GDP by around ¾% at their peak in a year’s time. The expected path for interest rates is lower than at their August assessment. See table 1.A of Monetary Policy Report: https://www.bankofengland.co.uk/-/media/boe/files/monetary-policy-report/2024/november/monetary-policy-report-november-2024.pdf

About the TUC: The Trades Union Congress (TUC) exists to make the working world a better place for everyone. We bring together the 5.5 million working people who make up our 48 member unions. We support unions to grow and thrive, and we stand up for everyone who works for a living.