Rates hold only delaying inevitable cut say manufacturers

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 Chief Economist, Steve Radley, 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."