British business disappointed with today’s half per cent interest rate cut
08/01/09 | 12:01
Commenting on today’s MPC decision, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:
"British business is disappointed by the MPC’s decision today to cut interest rates by just a half per cent. We believe it is an inadequate reaction to the rapid worsening in economic circumstances.
“The recent downward revision in GDP figures, coupled with further unemployment increases and rapid declines in house prices, justified a full one per cent cut in rates, in line with the BCC’s recommendations.
“The outlook is dire, and the MPC must act forcefully.
“In order to ensure that the economy does not slide into a prolonged depression, we urge the MPC to reduce interest rates to almost zero in the next few months. It must also supplement lower interest rates with vigorous quantitative easing.”
Ends
Media Contacts:
Fiona Cunningham
Tel: 020 7654 5812
Email: f.cunningham@britishchambers.org.uk
OR
Sam Turvey
Tel: 020 7654 5813
Email: s.turvey@britishchambers.org.uk
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.