Manufacturers urge Bank to pursue cautionary approach to rates

EEF, ‘the manufacturers organisation’ has welcomed today’s decision to leave interest rates unchanged and has urged the MPC to hold off increasing interest rates again until the economic picture has substantially strengthened.

EEF believes that the overall economic picture still remains mixed and inflation remains under control. Its latest Q4 survey of the manufacturing sector published earlier this week showed that whilst conditions are set to improve in 2004, the forecast growth of 1.9% for manufacturing will still fail to match the UK trend growth rate.

EEF Chief Economist, Steve Radley said:

"Manufacturers will welcome the Bank’s decision to pause and allow the recovery to gain momentum."

ENDS

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