BOLTON and Bury Chamber is calling for a cut in interest rates tomorrow when the Bank of England's Monetary Policy Committee meets.

Figures from the Office for National Statistics show that manufacturing output dropped in September by 1.6 per cent and the Chartered Institute of Purchasing and Supply has revealed that business activity is at its lowest for more than five years.

Andrew Ratcliff, Chief Executive of Bolton and Bury Chamber, said today: "This double dose of bad news will heighten business fears that the effects of manufacturing recession are spreading to parts of the service sector.

"While the long-term outlook for the economy still looks sound, it is imperative that the Bank of England provides a necessary jolt tomorrow by cutting interest rates by as much as half of one per cent."