Interest Rates Decision Awaited

The Bank of England is set to reveal whether interest rates are to be cut amid intense pressure from businesses hard hit by the economic squeeze. Business leaders and trade unions are demanding that rates be cut from their current level of 7.5% to boost the economy and improve the competitiveness of British industry.

The calls reached a crescendo as members of the MSF white collar union demonstrated outside the Bank of England warning that unless the rate was cut jobs would be lost.

Meanwhile, shares fell heavily once again as tension grew over whether the Bank of England would cut interest rates. While dealers struggled to call the outcome of the decision, a surge in the yen and a resulting nosedive on the Nikkei provided little cause for optimism on the markets. With little corporate news to divert attention, the FTSE-100 Index fell 93.2 points to 4,735.7.