Half point cut too timid say manufacturers

Britain ’s manufacturers expressed their disappointment at the decision to cut interest rates by only half a point today, given the wide range of data indicating the recession is gathering pace.

Commenting, Steve Radley, Chief Economist at EEF, said:

“This year was already going to be a serious challenge for manufacturers but all the indications are that the downturn is gathering pace at home and abroad.

“Whilst the Bank has indicated it wanted to take a measured approach to cutting rates, this is too timid to deal with the current situation. Given the expectation that rates will be cut again the question has to be asked ‘why wait’?”.

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