Manufacturers support rates hold
Manufacturing bosses have come out in support of today’s (5 June) decision by the Bank of England’s Monetary Policy Committee (MPC) to hold interest rates at five per cent.
The manufacturers’ organisation EEF said it believed it was right to maintain a cautious approach in balancing a slowing economy and problems in the financial and housing markets with mounting inflationary pressures.
EEF chief economist, Steve Radley, said: “Given the current extent of inflationary pressures, the Bank faces an unenviable dilemma in balancing further signs of weakness with growing concerns over inflation. But unless it becomes clear that the economy is deteriorating sharply, the Bank is right to continue its cautious approach.”
