EEF had called for a significant cut in rates in response not just to the recent turmoil in the financial markets but also the accelerating downturn in manufacturing. Whilst further cuts in interest rates may be needed, EEF believes the government also has a role to play in the forthcoming pre-budget statement.
Commenting, EEF Chief Economist, Steve Radley, said:
“The Bank has clearly recognised that unchartered territory requires unconventional measures and has torn up its previous script. The baton now passes to government to do its bit with timely and targeted measures in the forthcoming pre-budget statement.”
ENDS