CBI WELCOMES BIG STRIKE ON INTEREST RATES
Commenting on the decision by the Bank of England’s Monetary Policy Committee (MPC) to reduce interest rates by 1% to 2% today (Thursday), Ian McCafferty, CBI Chief Economic Adviser said:
“The economy needs a significant monetary stimulus and the Bank has clearly decided this will be best achieved by another big cut in interest rates. What is critical for business and consumers alike is that this reduction is passed on.
“The economy is stalling, inflation is expected to undershoot the Bank’s own target and the headline RPI rate of inflation is likely to turn negative for at least a few months in 2009. We need to see lending improve and to keep business working.”
4 December, 2008
Notes to Editors:The CBI is the UK's leading business organisation, speaking for some 240,000 businesses that together employ around a third of the private sector workforce. The organisation is also the UK's official business representative in the European Union, which generates more than 50 per cent of regulation affecting British firms.
Media Contact:CBI Press Office on 020 7395 8239, out of hours pager 07623 977 854, or email press.office@cbi.org.uk