UK businesses call for rate cut
Oct 07 2008
The Confederation of British Industry (CBI) and the British Chambers of Commerce (BCC) have called for a rate cut of half a percentage point when a decision is made later this week.
Both business groups said the monetary policy committee, which is due to make the decision tomorrow, has no choice but to cut interest rates.
John Cridland, deputy director general of the CBI, states the group had previously recommended a cut in November, but now says this decision should be brought forward to October.
This verdict should be made 'in the light of the current turmoil in the markets, the damage to confidence and implications for the real economy,' Cridland explains.
David Kern, economic advisor at the BCC, adds that 'there is a serious danger the recession will deepen' if corrective work is not carried out.
High street banks are being urged by the Federation of Small Businesses not to raise fees higher, to make life easier for small businesses.
The call came after Barclays increased its interest rates to 10.8 per cent over the basic rate.
Both business groups said the monetary policy committee, which is due to make the decision tomorrow, has no choice but to cut interest rates.
John Cridland, deputy director general of the CBI, states the group had previously recommended a cut in November, but now says this decision should be brought forward to October.
This verdict should be made 'in the light of the current turmoil in the markets, the damage to confidence and implications for the real economy,' Cridland explains.
David Kern, economic advisor at the BCC, adds that 'there is a serious danger the recession will deepen' if corrective work is not carried out.
High street banks are being urged by the Federation of Small Businesses not to raise fees higher, to make life easier for small businesses.
The call came after Barclays increased its interest rates to 10.8 per cent over the basic rate.
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