Hold in rates right for now but cut should be on Bank's radar

The Bank of England is right to leave interest rates on hold for the time being, though the prospects for a cut in the near future are increasing according to EEF, the manufacturers’ organisation.

EEF believes that the balance of evidence is clearly pointing to a slowing economy, in the UK and overseas, and the prospects for further instability in the financial markets may well impact on business and consumer confidence in the near future.

Commenting, EEF Chief Economist, Steve Radley, said:

“While an interest rate cut should now be on the Bank’s radar, it is sensible to wait for more evidence on the likely slowdown in economic growth. But the MPC should stand ready to cut rates if the world economy or confidence deteriorates significantly.”

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