Today’s decision to hold interest rates remains the right course of action with Britain’s manufacturers having more of an eye on the forthcoming Budget, according to EEF the manufacturers’ organisation.
Responding to today’s decision, EEF sees little reason for a cut with many indicators, including today’s manufacturing output figures, pointing to an improving picture. It believes that companies will be more concerned that the forthcoming Budget does not add to their escalating cost base and that government takes steps wherever possible to ease the burden of rising energy prices and pensions.
EEF Chief Economist Steve Radley said:
“We see little justification for interest rates to move in either direction. The Chancellor’s decisions in the Budget are now of more immediate concern to manufacturers facing a raft of escalating costs.”
Commenting on today’s Manufacturing Output figures Steve Radley, said:
“These figures confirm evidence on the ground that the picture for manufacturers has picked up since the back end of last year, with growth prospects at home and in the eurozone now being translated into firm orders.”