Rates hold only delaying inevitable cut say manufacturers
Release date: 09/05/2008
Britain’s manufacturers reluctantly accepted today’s decision to leave interest rates on hold in the face of worries about inflation but warned that another cut in interest rates is only a matter of time amid further signs of a weakening UK economy.
Whilst stark rises in oil and commodity prices have given businesses as well as the Bank cause for concern, EEF believes that mounting threats to business and consumer confidence mean that interest rates will almost certainly need to be cut again in June.
Commenting, EEF Regional Director, Alan Hall, said:
“The economy has been through a series of shocks since the credit crisis hit last summer and the Bank has been right so far in responding with a measured approach on rates. However, despite concerns on inflation, further cuts to interest rates are needed to prevent the economy from drifting towards recession.”
Notes for editors
For more information contact Jenny Russell 0191 4165656 jenniferrussell@eefnorthern.org.uk
EEF Northern has more than 500 member companies in the North of England and provides the most cost effective legal, employment law, employee relations and HS&E advice and training in the UK.
EEF Northern employs teams of HR and employment specialists and has access to more than 60 lawyers and barristers to help its members understand the issues associated with the ever increasing introduction of legislation and regulation.
Membership of EEF Northern gives immediate unlimited access to the team of specialists - including the largest specialist employment law team in the UK, which provides professional no-nonsense advice and guidance either by telephone or in person.
In addition, EEF represents the interests of its members at UK Government, European and international level, and can provide advice and support on issues and legislation that can affect almost every aspect of business.
Visit www.eef.org.uk/northern for further information.