MPC must cut rates to 1 per cent on Thursday. More sweeping steps needed
04/01/09 | 00:01
Commenting on the choices facing the MPC at its January 2009 meeting next Thursday, David Kern, Chief Economist at the BCC, said:
“The rapid worsening in the economic situation and growing fears over rising unemployment reinforce the need for the MPC to continue with aggressive interest rate cuts.
“To alleviate the most devastating consequences of the serious recession, we urge the MPC to cut rates by a full one per cent on Thursday, to one per cent. A prolonged depression can still be averted if the authorities adopt forceful measures.
“But interest rate cuts, though important, are no longer adequate on their own. They will have to be supplemented by new and more far-reaching policies – additional fiscal stimulus and quantitative monetary 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.