Job losses ‘likely’ unless interest rate cuts are passed on

The CBI warned yesterday that the relationship between businesses and lenders has deteriorated sharply and job losses will be acute if lending restrictions continue. As the Bank of England’s monetary policy committee meet today to discuss a cut in interest rates, and several banks yesterday signalled that they would be unwilling to pass on any cuts, the industry body told MPs that the failure to supply credit to small businesses and to lower interest on mortgage payments would result in a cull of jobs and investment. The Bank of England is under pressure to slash interest rates by at least one point.