Slash interest rates to boost economic growth, Bank told

FURTHER interest rate cuts by the Bank of England would encourage consumers to spend more and give the economy a boost, business leaders have said.

- By Mauricio Alencar

GDP grew by 0.7% in the first three months of the year and economists suggest lower borrowing costs would help growth later in the year amid global trade turmoil and higher taxes.

Ben Jones, from the Confederation of British Industry, said he expected a rise in inflation and a cooling labour market to slow household income.

But “lower interest rates should encourage consumers to save less and spend more”.