Half point rate cut too timid say manufacturers
According to their trade body, EEF, Britain’s manufacturers are disappointed at the decision to cut interest rates by only half a point today (8 January) “given the wide range of data indicating the recession is gathering pace”.
Chief economist at EEF, Steve Radley, 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.”
Radley believes that while the Bank had indicated it wanted to take a measured approach to cutting rates, the cut from 2% to 1.5% was 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’?” he added.
