EEF, the manufacturers’ organisation has welcomed today’s decision to leave interest rates on hold. After increasing rates last month, it believes the Bank can now afford to pause before contemplating the need for any further rise.
Whilst there continues to be a range of strong economic data across the board, EEF believes this has yet to manifest itself in secondary effects on inflation. In addition, its latest survey evidence published earlier this week suggested firms’ expectations of further price rises were easing.
EEF Chief Economist, Steve Radley, said:
"We remain to be convinced that current price pressures will be translated into a serious increase in inflation. Having fired a warning shot last month, the Bank should pause for breath and wait for clearer evidence of the need for any further rise."