UK business leaders have called for a cut in interest rates amid continuing financial instability.
The Confederation of British Industry and the British Chambers of Commerce (BCC) have urged the Bank of England to slash rates by half-a-per cent.
“Without forceful and urgent corrective action, there is a serious danger that the recession will deepen and cause huge damage,” warned economic advisor to the BCC, David Kern.
The Bank’s Monetary Policy Committee (MPC) sits later this week. Its decision will be closely followed by economists and traders in offices in London.
Mr Kern said: “The MPC must cut interest rates without delay with a half per cent cut on Thursday.”
The current banking crisis has forced the Bank and the European Central Bank to jointly inject $60 billion (£34 billion) into financial markets.
By lending money to banks they hope to increase liquidity and stimulate new lending and investment.