Trade Union Congress says there is a need to take a bold approach to cutting rates: do it by 1.5% and more.

Unions call for a massive 1.5% cut in interest rates from the MPC.

Director of Finance continues to look at which organisations are calling for rate cuts, and more importantly - what kind of cut.

So far the Federation of Small Businesses (FSB) have called for a 0.5% minimum cut - as have PricewaterhouseCooper (PwC).

There is consensus across the board that a rate cut is needed desperately to minimise the extent of recession; and a majority of those calls have been made for a 0.5% cut.

However today Trade Union Congress has chipped in with a call to the MPC to cut rates by a massive 1.5%.

Judging by the conservatism of the committee, this may not transpire, even after the US slashed rates to 1%.

Nevertheless the TUC argues that the 1.5% should be the start of, "more rate cuts to come," as recession threatens to be longer and deeper than it needs to be.

TUC General Secretary Brendan Barber said:

"Even more importantly, the Government must act to ensure that rate cuts are passed on to bank customers. A cut in mortgage repayments would help boost the economy and help those in difficulties hang on to their homes.

"Business customers also need the relief that comes from cheaper credit. Many small businesses depend on ready access to credit for their cash flow, and many larger companies will struggle to pay back loan finance as the recession grips."

TUC warns that if the banks do not pass on the rate cuts, and continue paying bonuses to their staff, it will start to look as if tax payer bail-outs have not so much rescued the economy, as given a hand out to banks.

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