Bank must cut rates but the high street banks must pass it on, says TUC

As the Monetary Policy Committee begins its January meeting today (Wednesday), the TUC is calling on the Bank of England to opt for another substantial cut in interest rates, and for more to be done to make sure borrowers get the full benefit of any cut.

Midlands TUC Regional Secretary Roger McKenzie said: “Most commentators agree that with 2009 getting off to the gloomiest possible start, another big cut in interest rates, of between 0.5 and one per cent, is crucial if confidence is to return to the UK economy.

“But while some house owners and businesses have benefitted from much reduced monthly mortgage and loan payments, other banks and building societies have not been so generous.

“The Government must get tough with the banks who are failing to pass on the recent cuts, otherwise any drop in rates tomorrow will be meaningless as firms continue to go to the wall and thousands of workers find themselves joining the dole queue.”