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WE URGE THE MPC TO CUT INTEREST RATES IN NOVEMBER

04/10/07 | 12:02

David Kern, BCC Economic Adviser said:

"British business is disappointed but not entirely surprised by the MPC's decision today to keep interest rates unchanged at 5.75%. Given the worsening economic prospects, both UK & global, a cut today would have been justified and would have been very helpful in restoring confidence.

“But we appreciate that today’s decision was an extremely difficult one for the MPC. Following the Northern Rock crisis, the Bank of England must restore its credibility and authority. It must show greater sensitivity to the problems of the wider economy, while at the same time making it clear that it will not yield to outside pressures.

ENDS


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NOTES TO EDITORS:

The British Chambers of Commerce (BCC) is the National Voice of Local Business.
The BCC sits at the heart of a powerful nationwide network of Accredited Chambers of Commerce serving business across the UK, which employ over five million people.