Bank misses chance for swift action at start of year

EEF believes the growing chance of a recession in the United States , the knock on effects of the credit crunch on business and consumer confidence and a possible slump in the housing market outweighed any reason for keeping interest rates on hold.

Commenting, Ian Smith, Chief Executive of EEF West Midlands, said:

“The Bank has missed an ideal opportunity to head off the pervading economic gloom which has enveloped the UK at the start of the year.

“The evidence from the past month points to a growing risk of a weaker economy and there is little reason to believe the case for a cut will be any weaker next month. “

EEF West Midlands is the largest employers’ association in the region, representing primarily engineering, manufacturing and technology-based organisations. Serving those member companies is a team of 160+ staff providing a wide range of experience and expertise.

EEF West Midlands supports and advises on all aspects of HR including employment law and employee relations (ER). The ER team handles hundreds of employment tribunals for members annually. Other areas of support include health, safety and the environment. With its training centres, EEF West Midlands can also help develop the workforce required for businesses to succeed. Regionally and nationally EEF represents the interests of those determining the economic and social conditions in which employers operate.