EEF, the manufacturers organisation welcomed today’s decision to hold interest rates and believes the next few months will provide the Bank with breathing space to assess whether the current soft patch proves temporary or not.
EEF’s latest survey evidence shows that’s whilst conditions remain difficult there is a cautiously improving picture for the rest of this year. However, with mixed signals remaining across the economy the Bank must retain a watchful eye should growth weaken.
Chief Economist, Steve Radley, said:
“Last month’s cut provides useful insurance against the dangers that the current soft patch could be more than temporary. The Bank can now pause for breath until the evidence shows more clearly the direction in which the economy is heading."