Rate cut was 'essential'
Oct 09 2008
Industry bodies describe the Bank of England's decision to cut interest rates by 0.5 per cent as good news for small firms.
The Confederation of British Industry (CBI) says the move is 'essential and timely', adding that it will help to restore both business and consumer confidence.
John Cridland, deputy director general of the CBI, states the cut to 4.5 per cent 'will be welcomed by business and will help the economy at a critical time'.
These thoughts are echoed by the British Chamber of Commerce, which states it is 'thrilled' about the 'bold and necessary step'.
David Frost, director general of the industry group, says: 'This cut will, for now, steady the markets and inject much needed confidence.'
However, the group calls for another reduction in rates, to four per cent over the next four months.
Six central banks cut their interest rates yesterday, with the UK decision coming a day earlier than expected.
Certain high street banks, including HBOS, Lloyds TSB and Barclays, have already passed these cuts on to their customers.
There are currently no comments on this article
Comments