Manufacturing disappointed as MPC fails to follow US lead

Manufacturing News, Source : TheManufacturer.com
Published : 07 Nov 2002 14:05

The EEF (Engineering Employers Federation) has expressed its disappointment at today's decision to leave interest rates on hold, believing that a cut was strongly justified on overall economic grounds and in the interests of shoring up business confidence.

EEF Deputy Chief Economist, Dougie Peedle, said:

"The Federal Reserve has shown the need for decisive action at this time, and the UK has failed to follow. This decision hurts even more given the continued failure of the European Central Bank to reduce rates in the eurozone, the biggest export market for UK manufacturers.

"Manufacturing confidence continues to be dragged down by the deteriorating international outlook. Whilst the Bank must not take risks with the economy, companies will find it hard to understand the reluctance to reduce rates further when overall growth in the economy is modest, there is no threat to inflation and it continues to undershoot what is supposed to be a symmetrical target."

Comments on this story

click here to add a comment