Commenting on today’s announcement by the Bank of England, Ms Lee Hopley, Chief Economist at EEF, the manufacturers’ organisation, said:
“The aggressive action shows the Bank is so concerned about the potential negative impact of the referendum on the economy that it couldn’t afford to wait for further evidence. While it’s open to question whether the weakness seen in a number of surveys conducted in the wake of the vote will be sustained, the Bank’s action should give confidence a lift.
“Yet the benefits to business from the monetary policy easing will be limited as interest rates are already very low. This puts the onus on the government to take additional steps to support the UK manufacturing sector and economy. Such measures need to form part of an industrial strategy that prioritises delivering a more competitive business environment for manufacturers.”