UK interest rates left on hold

Manufacturing News, Source : TheManufacturer.com
Published : 10 Oct 2002 14:51

The Bank of England's monetary policy committee has left interest rates unchanged at 4 per cent for the 11th month running.

The Bank's decision will disappoint the manufacturing sector, which has been holding out for lower interest rates to prevent a slowdown in global growth.

Reacting to the Bank of England's decision to keep interest rates on hold, CBI Chief Economic Adviser, Ian McCafferty said: "Stability is crucial for business at the moment. So before making a move the Bank needs to be convinced that a cut would not need to be quickly reversed.

"But there are worrying signs emerging. Growth in the rest of the world is losing momentum, UK manufacturing remains mired in recession, and consumers are becoming less keen to spend.

The MPC needs to remain alive to these dangers and be prepared to cut rates if further signs of weakness emerge."

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