CBI stands firm on interest rate calls
The Confederation of British Industry says it will stand by its call for the Bank of England to reduce interest rates by half a percentage point, despite contradictory advice from another economic think-tank.
The Confederation of British Industry says it will stand by its call for the Bank of England to reduce interest rates by half a percentage point, despite contradictory advice from another economic think-tank.
The National Institute of Economic and Social Research said leaving interest rates unchanged would not adversely affect economic growth. It said the UK would avoid a recession and would see its economy grow by 2.3% this year and 2.1% next year, with inflation easing.
But the CBI said it stood by its call for an interest rate cut. A spokeswoman for the industry body said its recent survey looked at what was happening across all sectors of the economy, not just manufacturing.
In the survey CBI director-general Digby Jones said business needed decisive and meaningful action to shore up confidence, which meant a half of one percent cut in rates.
‘With the inflation outlook benign, there is ample scope for the Bank to lower rates and the economic situation justifies a half-point cut. If the bank was not to cut rates by half a point now, it is difficult to think of a situation when it will,’ he added.
In support of the upbeat nature of the NIES report, the British Bankers Association confirmed that consumer credit grew in September, while the government’s quarterly GDP figures show the economy had expanded by 0.6%, compared with 0.4% last year.
However, the government did say long-term fallout from the terror attacks in America would dampen GDP in the fourth quarter.
Links
UK export outlook worst since 1980
The numbers you crunch tell a story. Your expertis...
23yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleThe ICAEW confirms new vice president, with senior heads appointed at KPMG and EY. Within the mid market, a flurry of end of year partner appointments...
View articleThe ICAEW confirms new vice president, with senior heads appointed at KPMG and EY. Within the mid market, a flurry of end of year partner appointments...
View articleThis follows an investigation into undisclosed personal loans and issues with an acquisition. Despite challenges, the company aims to achieve £1bn in ...
View articleThe ICAEW confirms new vice president, with senior heads appointed at KPMG and EY. Within the mid market, a flurry of end of year partner appointments...
View articleThere is optimism that the IPO market will rebound in the second half of 2024, driven by pent-up demand and potential improvements in economic conditi...
View articleThe ICAEW confirms new vice president, with senior heads appointed at KPMG and EY. Within the mid market, a flurry of end of year partner appointments...
View articleKPMG confirms reappointment of it's UK chair, while EY announces Janet Truncale as the next EY global chair and CEO Read More...
View articleThe ICAEW has announced the appointment of its forthcoming chief executive Read More...
View article