Manufacturers welcome rate cut but stress more may be needed

Release date: 10/04/2008

Manufacturers welcomed today’s 0.25% cut in interest rates and urged the Bank of England to be ready to take further decisive action.

Responding to today’s decision, EEF West Midlands believes that despite the sector’s continued resilience, the risks to the wider economy are increasing. Tighter credit conditions, falling house prices and weakening global growth now pose significant threats to business investment and consumer spending.

Commenting, Peter O’Grady, Head of Representation at EEF West Midlands, said:

“So far the Bank’s gradual approach to cutting rates has been the right one, but given how quickly the situation is changing there are now greater risks to business and consumer confidence. The Bank must be ready to tear up the current script and respond if necessary with swift and decisive action.”

 

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

Their HR and Legal team supports and advises on HR issues including employment law and employee relations and handles hundreds of employment tribunals for their members annually. Safety and Environmental Services, the health and safety division of EEF West Midlands, also provides expert support to its members.

At their Technology Centre in Birmingham and the Conference and Training Centre in Leamington Spa, EEF West Midlands help develop the workforce required for businesses to succeed at all levels. This includes training 80% of all engineering apprentices in the Birmingham and Solihull area through to management development and nationally accredited courses for health, safety and environmental practitioners.

Nationally and across the region, EEF provides a powerful voice for its members.

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