10th April 2008
Businesses welcome interest rate cut
Business groups have welcomed the Bank of England's decision to cut the Bank interest rate by 0.25 percentage points, to 5.0%.
The Bank's Monetary Policy Committee (MPC) had been widely tipped to reduce the rate in response to gathering signs of an economic slowdown, particularly within the mortgage and housing markets. The British Retail Consortium (BRC) said that the move provided the boost that struggling customers and businesses were hoping for.
"With consumer confidence at its lowest level for 15 years, customers are reining in their spending and every prudent retailer is looking at cost-cutting more seriously than for some time," said BRC director-general Stephen Robertson.
However, many commentators said that the rate cut was overdue, and that further reductions may soon be needed in order to avoid a more serious economic downturn.
"Although this move was expected, sadly it is overdue and a reduction to 5.0% is no longer sufficient," said David Kern, economic adviser to the British Chambers of Commerce. "We urge the MPC to consider a further cut in rates in May to 4.75%."
The Bank's Monetary Policy Committee (MPC) had been widely tipped to reduce the rate in response to gathering signs of an economic slowdown, particularly within the mortgage and housing markets. The British Retail Consortium (BRC) said that the move provided the boost that struggling customers and businesses were hoping for.
"With consumer confidence at its lowest level for 15 years, customers are reining in their spending and every prudent retailer is looking at cost-cutting more seriously than for some time," said BRC director-general Stephen Robertson.
However, many commentators said that the rate cut was overdue, and that further reductions may soon be needed in order to avoid a more serious economic downturn.
"Although this move was expected, sadly it is overdue and a reduction to 5.0% is no longer sufficient," said David Kern, economic adviser to the British Chambers of Commerce. "We urge the MPC to consider a further cut in rates in May to 4.75%."
- 5th January 2009 Businesses urged to make redundancies 'last resort'
- 5th January 2009 'Cut interest rate to 1%' says business group
- 2nd January 2009 Gloomier forecast from business group
Delicious
Digg
reddit
Facebook
StumbleUpon