Bank misses chance for swift action at start of year

The Bank of England has missed an opportunity today to stamp its authority on the economy at the start of the year, amidst growing evidence of a more significant slowdown than expected in 2008 according to EEF, the manufacturers’ organisation.

In particular, EEF believes the growing chance of a recession in the United States, the knock on effects of the credit crunch on business and consumer confidence and a possible slump in the housing market outweighed reasons for delay.

Commenting, EEF Chief Economist Steve Radley, said:

"The evidence from the past month points to a growing risk of a weaker economy and there is little reason to believe the case for a cut will be any less strong next month. The Bank has missed an ideal opportunity to head off the pervading economic gloom which has enveloped the UK at the start of the year."

ENDS



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