Britain's largest business organisation has urged the Bank of England to cut interest rates to support sectors, like manufacturing and tourism, at risk from a global slowdown in the economy.

The Confederation of Business Industry (CBI) said the Bank of England should cut interest rates by 0.25 percentage points. The bank's Monetary Policy Committee (MPC) meets this week and it will be watched closely after the US Fed's rate cut last week. The MPC has left UK rates unchanged at 6.0 per cent since last February.