Manufacturers welcome rates hold and chance to benefit from recovery

EEF, the manufacturers’ organisation welcomed today’s decision to leave interest rates on hold and supported the Bank’s cautious stance which it believes will allow companies to take advantage of an improving economic picture.

In particular, EEF had voiced its concern that another rate rise now could damage prospects for exporters by pushing the pound to potentially damaging levels against the dollar. This view was given extra weight this week in its first quarter engineering outlook survey which showed the best prospects for 7 years on the back of a recovery in the US and Asian markets.

EEF Deputy Chief Economist Dougie Peedle, said:

"Manufacturers will welcome this breathing space which will allow them to take advantage of an export led recovery. The Bank is right to wait and assess the impact of the last two rate rises on both the consumer and the dollar weakness on the economy overall."

Notes for editors

EEF, the manufacturers' organisation, has a membership of 6,000 manufacturing, engineering and technology-based businesses and represents the interests of manufacturing at all levels of government. Comprising 11 regional Associations, the Engineering Construction Industries Association (ECIA) and UK Steel, EEF is one of the UK's leading providers of business services in employment relations and employment law, health, safety and environment, manufacturing performance, and education and skills.

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