MPC should cut rates by a full one per cent on Thursday
04/12/08 | 00:01
Commenting ahead of the MPC’s interest rate decision on Thursday, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:
“In the face of sharp falls in economic activity we urge the MPC to cut interest rates by a full one per cent.
“Failure to act decisively heightens the risk that the pace of unemployment will accelerate and confidence will plunge even further.
“We expect the MPC to persevere with rate cuts early in the New Year, with the aim of bringing rates down to one per cent by the end of March 2009.
“As interest rates fall to historically low levels, the MPC will have to adopt unconventional quantitative techniques. This means directly targeting the quantity of money through large-scale purchases of securities.”
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.