Responding to today’s decision, EEF the manufacturers’ organisation 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, EEF Chairman, Martin Temple, said:
“So far the Bank’s gradual approach to cutting rates has been the right one. However, we are now dangerously close to creating a climate of fear which could talk ourselves into recession. The Bank must be ready to tear up the current script and take more decisive action to protect business and consumer confidence.”
ENDS