Rate stability the right course of action say manufacturers

Release date: 15/08/2008

Britain’s manufacturers accepted today’s decision to leave interest rates on hold in the face of on-going worries about inflation, but warned that a cut in interest rates may only be matter of time amid further signs of a weakening UK economy.

Commenting, EEF Head of Economic Policy, Lee Hopley, said:

“The MPC continues to be pulled in opposing directions by rising inflation and slowing growth. However, the balance of risk appears to be shifting more rapidly. A cut in interest rates may be needed sooner rather than later to prevent the economy from drifting towards recession.”

ENDS

Notes for editors

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