UNION leaders urged the Bank of England to go further in cutting interest rates to revive the economy today.

The call came after the bank reduced the rate to 3.75 per cent, a cut of 0.25 per cent, which is at its lowest level in nearly three years.

TUC general secretary Paul Nowak said: “This rate cut is welcome — but one cut every now and again isn’t enough for a fragile economy struggling with stagnant demand and failing confidence.

“The bank must go further and faster next year after a cautious 2025 — it’s vital this marks the start of a sequence of quick-fire and substantial rate cuts.

“That’s what households and firms need right now. More money in the pockets of working people means more spend on our high streets — and lower interest rates will give firms the confidence to invest and incentivise wealthier households to spend.”

And Unite general secretary Sharon Graham said: “Today’s interest rate cut is a small step in the right direction for families struggling with the cost-of-living crisis.

“The Bank of England now needs to undertake a series of rate cuts throughout 2026 while the government finally delivers the investment that our economy so sorely needs.

“This is essential to ensure that workers can make ends meet and the economy can grow.”

Bank governor Andrew Bailey showed little sign of obliging. He said: “We’ve passed the recent peak in inflation and it has continued to fall, so we have cut interest rates for the sixth time.

“We still think rates are on a gradual path downward. But with every cut we make, how much further we go becomes a closer call.”