BRITAIN is stuck in a Tory “doom loop,” the TUC warned after the Bank of England held interest rates at 5.25 per cent today.

Governor Andrew Bailey said it was “much too early” to consider cutting rates as the bank’s monetary policy committee downgraded its forecast for economic growth and said inflation could stay higher for longer.

TUC general secretary Paul Nowak said: “The UK is stuck in a Conservative doom loop, and it is working people who are paying the price.

“These forecasts are a damning indictment of the Tories’ economic record, with growth set to slow further as unemployment rises. 

“We can’t go on like this. Jobs and livelihoods are being put on the line.

“We need a serious plan for jump-starting our stagnant economy. That means a proper industrial strategy and investment in green infrastructure and public services.”

Carsten Jung, senior economist at the Institute for Public Policy Research (IPPR), said the bank’s rate is “likely too high” and that it was not transparent enough about its inflation modelling.