More please, says the TUC

The TUC welcomed the move today but said it was not enough.

General secretary Brendan Barber said: "We welcome the international co-ordination that has brought simultaneous cuts in the UK, Europe and the US, but a half per cut is not enough.

"The inflationary threat is melting away, and the question now is how deep and long the slowdown will be. A deep cut in rates would not simply provide help to businesses and mortgage payers, it would also help end the financial crisis by making risky and insecure loans more likely to be repaid.

"The Chancellor was right to remind the Bank they have a remit to back government economic policy. A half per cent cut is not enough to support today's finance package."