Speaking after the Monetary Policy Committee decided to cut interest rates by half a percentage point to 1.5%, Grahame Smith, Scottish Trades Union Congress (STUC) General Secretary said:
“Although this substantial cut is welcome, it seems inevitable that another cut of similar magnitude will be necessary next month. It is therefore disappointing that the MPC didn’t opt for a full percentage point cut today.
“Of course, for cuts in interest rates to have the intended stimulatory effect on the economy, they must be passed on to customers by the banks. The Government must urgently consider robust measures to deal with those banks currently refusing to pass on recent cuts or fulfil their obligations under the Bank rescue package.
ENDS
For further information contact
Stephen Boyd 0141 337 8100