Commenting, he said: "As the recession deepens and the risk of deflation continues to loom on the horizon, this latest interest rate cut is welcome. However, cutting interest rates can only go so far to help business and individual borrowers. For many borrowers, the problem is not the price of credit but its availability.
"The Government must now set out a clear strategy for kick-starting lending to consumers and sound businesses. Unless the lending market can be quickly unfrozen, ministers will have to investigate whether one of the state-owned banks can be used to increase lending to businesses."
