BUSINESS leaders in Bolton and Bury have welcomed the Bank of England's decision to cut interest rates by a quarter per cent to five and three quarter per cent.

Andrew Ratcliff, Chief Executive (designate) of Bolton and Bury Chamber, said: "We have been lobbying for an interest rate cut since last February, when rates first hit and then stuck at 6 per cent.

"The cut is long overdue, but nevertheless, we are very pleased that it has been made.

"With local businesses, particularly manufacturers, still struggling against a strong pound and intense competition, this is welcome news to our members.

"It will help boost confidence during a time of growing economic uncertainty.

"We hope that the Bank will be able to make further cuts in the coming months and that inflationary pressures won't be stoked up in the March budget by the imprudent tax cuts or spending increases of a pre-electioneering Chancellor."