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Chris Fletcher
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Leaders call for interest rate cuts
Kevin Feddy6/10/2008
BUSINESS leaders in the north west today demanded a cut in interest rates to bring some relief to the region's beleaguered manufacturers and service sector firms.
The Bank of England's Monetary Policy Committee will announce on Thursday whether it rates will be reduced from five per cent, where they have stood since April.
Some analysts are expecting a reduction of up to 0.5 per cent this week, in an attempt to breathe some life into the country's battered economy.
Andrew Semple, spokesman for the manufacturers' organisation the EEF, said: "Our members across Manchester are growing increasingly concerned at the scale of the downturn we are now seeing in the UK economy, as well as prospects in other key markets.
"Manufacturers are continuing to invest but volumes are undoubtedly down as confidence takes a big knock.
"It seems that inflation is now approaching or indeed at a peak, and we will see steep falls in the coming months.
"With that scenario apparent, and with the bigger economic picture looking so bleak, our members will be looking to the Bank of England to cut rates by 0.25 per cent immediately and be the start of a trend to continue to reduce rates into 2009.
"A failure to act at this stage will be greeted very badly as a signal that the Bank is not prepared to respond decisively to what we see as uncharted economic waters."
Chris Fletcher, deputy chief executive of Greater Manchester Chamber, said: "The real effects of the economic situation are now becoming evident, and while news on the stock markets has dominated, our members are beginning to report some significant impacts.
"Our members in the service sector are reporting some really difficult conditions, and the position for exports has worsened considerably.
"There are increasing calls for a cut in interest rates to help keep the economic at least ticking over.
"The real concern is that consumer spending stalls completely and the knock-on effect from this could be very worrying indeed."
Most recent 2 of 3 user comments
As anyone would expect, business is rightly trying to look after it's own interests.
When are we going to hear from Gordon Brown or Alistair Darling what the Government will do for the country as a whole?
When are we going to hear from Gordon Brown or Alistair Darling what the Government will do for the country as a whole?
Chris Green, Chorlton-cum-Hardy
6/10/2008 at 22:54
6/10/2008 at 22:54
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since the bank of england sets interest rates to control inflation, and for no other purpose; the banks which have been lending wildley up to now and now are hardly lending at all are privatly owned and were heavily deregulated in 1986, the companies and home buyers they have leant to are not controlled by government and the fuel and the energy companies which are passing on price rises determined baroad are either privatly or foreign owned what is there that gordon brown and alisdair darling could do if they wanted to ?
7/10/2008 at 14:59