Consumers need a rate cut soon, says TUC

Consumers in the UK are in urgent need of a cut in the base rate of interest, according to the Trades Union Congress (TUC).

The congress insists that millions of consumers around the country, many of whom have sizable personal loan and credit card debt, are struggling to manage their finances effectively and would benefit from a cut in borrowing costs.

“Millions of ordinary employees are struggling to meet rising food, transport and energy costs, alongside their mortgage payments,” said the TUC’s head of economic and social affairs Adam Lent.

“An interest rate cut would have brought some much needed relief and boosted their confidence as consumers. It is now urgent that rates are cut in February.”

Mr Lent’s comments came after the Bank of England had opted not to reduce the base rate of interest in January as many observers had hoped it would.