Bank of England cuts interest rates to 4.5%
Widely predicted move is designed to stimulate consumer spending
The Bank of England’s Monetary Policy Committee (MPC) has cut UK interest
rates to 4.5%.
The MPC’s decision was made at its 100th meeting and had been widely
expected, given current concerns about UK growth and consumer spending, and the
manufacturing sector’s recession.
Pressure group, the Forum of Private Business (FPB), which represents 25,000
UK small and medium-sized firms, said it was a welcome move in the current
economic climate.
FPB chief executive Nick Goulding said: ‘We are sure our members will welcome
this cut in interest rates, as it will boost consumer confidence following a
period of uncertainty over rising personal debt.’
Big business leaders also said the Bank had made ‘the right decision’ amid
mounting evidence of a UK slowdown.
UK rates have been maintained at 4.75% since August 2004.