Commenting on today’s MPC decision, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:

"We are pleased with the MPC’s decision to cut interest rates by one per cent. 

“The less than impressive reaction to the PBR, and worrying signs that UK activity is falling sharply, make it critically important for the MPC to persevere with aggressive rate cuts. The UK economy faces serious risks.

“There is a clear danger that unemployment will increase even more dramatically without urgent counter-measures. We strongly urge the MPC to cut interest rates by at least a further half per cent at its January meeting.”