Business groups call for rate cuts
Sep 16 2008
New figures demonstrate the rate of inflation has nearly reached its peak and so interest rates should be cut as soon as possible, the British Chambers of Commerce (BCC) believes.
The Office for National Statistics (ONS) reports that inflation now stands at 4.7 per cent - up from 4.4 per cent in July and well ahead of the government's two per cent target.
Commenting on the figures, David Kern, economic adviser to the BCC, says while consumer price index measures of inflation are up, other measures are beginning to go down, showing it is nearly at its peak.
'As the global financial crisis worsens, there is an urgent need to act promptly, in order to counter severe threats of recession,' he warns.
Kern adds that the monetary policy committee should therefore consider cutting rates to 4.75 per cent in October.
In response to the ONS figures, Bank of England governor Mervyn King has predicted inflation will peak at five per cent.
The Office for National Statistics (ONS) reports that inflation now stands at 4.7 per cent - up from 4.4 per cent in July and well ahead of the government's two per cent target.
Commenting on the figures, David Kern, economic adviser to the BCC, says while consumer price index measures of inflation are up, other measures are beginning to go down, showing it is nearly at its peak.
'As the global financial crisis worsens, there is an urgent need to act promptly, in order to counter severe threats of recession,' he warns.
Kern adds that the monetary policy committee should therefore consider cutting rates to 4.75 per cent in October.
In response to the ONS figures, Bank of England governor Mervyn King has predicted inflation will peak at five per cent.
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