Backing for freeze on Bank Rate
Manufacturers will support the decision made by the Bank of England's Monetary policy Committee (MPC) yesterday (7 January) to maintain interest rates at their historic low of 0.5% says the manufacturers' organisation EEF.
EEF said the announcement to maintain the Bank Rate and proceed with the Bank's asset purchase programme against a backdrop of continued uncertainty about the strength of economic recovery in the UK would engender the industry's approval.
EEF chief economist Lee Hopley (pictured) said: "The recovery is now underway but its strength remains in doubt. There are a number of potential pitfalls even as the UK economic starts growing again, including cautious consumers, questions over the public finances and a still-fragile banking system. The MPC is right to stick until the economic picture becomes clearer."
