The Trades Union Congress was not impressed by the decision to hold rates, arguing that this is not time for caution. "With little or no inflationary threat, the U.S. cut provided an ideal opportunity to lower rates here," said TUC General Secretary John Monks.
Monks said a cut would have been good for confidence as well as helping to realign the exchange rate. The recent fall in sterling versus the euro has already brought some relief to hard pressed manufacturing exporters, he added.