Bank must cut rates to avoid slump

UK - Britain faced warnings to cut interest rates to head off the risk of economic slowdown.

ARTICLE - The Bank of England's monetary policy committee meets next week to discuss a further cut in interest rates from the present 5.5 per cent.

The Paris-based Organisation for Economic Co-operation and Development (OECD) warned that the high value of the pound was hurting manufacturing industry.

Predicting that growth in the British economy will slow to 2.5 per cent from 3 per cent, the OECD warned: