Tesco chief executive Sir Terry Leahy held talks with the Bank of England’s Monetary Policy Committee (MPC) before it cut interest rates last week, it has emerged.
Leahy met with Bank governor Mervyn King and David Blanchflower arguing for a cut to try and boost consumer confidence in the run-up to Christmas, the Guardian reported.
While Tesco did not confirm the meetings, the retailer did say the MPC did a “very brave thing” in cutting rates to 3%, their lowest level since 1955.
Director of legal affairs Lucy Neville-Rolfe said: “Our concern is to make sure the banks pass the rate cut on.”
In September Leahy said that interest rates should come down as he believes inflation has now passed its peak.
