Industry welcomes rate cut

In particular, EEF believes the growing chance of a recession in the United States , the knock on effects of the credit crunch on business and consumer confidence and a possible slump in the housing market outweighed the potential risks to the inflation target

Commenting, EEF Chief Economist Steve Radley, said:

“The evidence from the past month points to a growing risk of a weaker economy. Whilst the Bank is right to keep one eye on inflationary pressures, business will welcome the current measured and gradual approach to reducing rates.”