INTEREST RATES AND BANK OF ENGLAND

That this House welcomes the half per cent. reduction in interest rates on 8th October; points out that a concerted half per cent. reduction still leaves the UK's interest rate far higher than that in the US, where the reduction will take rates to 1.5 per cent. and higher than Eurozone and Japanese rates; and therefore urges the Bank of England not to drag its feet and keep rates too high for too long, and to reduce interest rates to nearer US levels to increase jobs, growth and investment and to avoid the danger of a long Japanese-style recession.