MPC MINUTES SIGNAL IMPROVED PROSPECTS OF FURTHER INTEREST RATE CUTS
19/12/07 | 10:55
David Kern, Economic Adviser at the British Chambers of Commerce said:
"The MPC minutes reveal that the decision to cut interest rates to 5.50 per cent was taken unanimously and we are pleased that the MPC acknowledges the worsening threats to growth. The slow down in the housing market is more pronounced than was expected while commercial properties prices have fallen further.
"It is significant that the MPC saw that the downside risks to the economy and to inflation resulting from the credit crisis outweigh the upwards risks to inflation resulting from higher energy and food prices. We believe the MPC is in a strong position to continue to act pre-emptively and we urge it to consider a further cut in rates early in the New Year."
ENDSMEDIA CONTACT: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.