Manufacturers welcome measured response from MPC
Britain' s manufacturers will welcome today' s decision to leave interest rates on hold and the fact the Bank has avoided taking hasty action which might derail improving economic prospects, according to the EEF.
It believes that with considerable conflicting evidence emerging from different sectors of the economy and, with the international outlook remaining uncertain, a period of stability is essential to allow the emerging recovery take hold and business confidence to grow.
EEF Chief Economist Steve Radley said:
' Manufacturers will welcome the continued breathing space from the Bank. Until the MPC is confident that the statistical fog has completely lifted and has clear directions for its new target, it should hold off from raising rates. Premature action risks pushing industry back on to the rocks.'