Record low rates 'will not solve problem'

Llona Krohn, Principal Economic Advisor of Greater Manchester Chamber

A local economist who claims interest rates are about to nose-dive further has said that “broader” action is needed to tackle the problem.

Llona Krohn, Principal Economic Advisor of Greater Manchester Chamber, said the Monetary Policy Committee’s decision to cut interest rates to a historic low of 1% will not have the desried affect.

She said: “It was widely expected that the Bank would cut rates again this month. However, since past rate cuts do not seem to have had the desired effect, it is quite clear that broader action is needed.

“At the heart of our current economic situation is a global crisis of confidence and we would like to see decided, consolidated and coordinated international action to restore faith in the economic system.”