If confidence worsens the MPC should consider emergency cut in UK rates
Commenting on the Federal Reserve's unexpected decision to cut US interest rates by 75 basis points to 3.5 per cent
David Kern, Economic Adviser to the British Chamber of Commerce said:
"Although unexpected, the Fed's decision today highlights the mounting risks to the global economy resulting from the credit crisis. While we believe that talk of a recession should be rejected, we call on the MPC to be alert to the risks. If the situation worsens, the MPC should consider an emergency cut in UK interest rates, even before the scheduled time of the next meeting in early February."