TUC: Interest rate rise would be ‘economic self-harm’

Brendan Barber, TUC general secretary, said in response to the four per cent inflation rate:

“The inflation figures show just how unfair Britain today has become. At the top bankers’ pay and bonuses continue to grow, while ordinary people see their living standards fall, their jobs under threat and vital services cut.

“The City sits pretty and calls for interest rate rises, while the rest of the country struggles to pay its bills.

“The last thing that should now happen is a rise in interest rates. Price pressures have nothing to do with wages and much to do with the government’s decision to increase VAT, the unfairest tax of all. Interest rate rises would be nothing more than economic self-harm.”