CIMA hits out at Bank's rates decision
Failure by the Bank of England to lower interest rates this week will furthersqueeze struggling UK exporters in Europe, according to the Chartered Instituteof Management Accountants.
Jake Claret, deputy secretary of CIMA, said: ‘The decision shows that the Bankof England is just not listening to business.’
The institute hit-out after the Bank’s Monetary Policy Committee (MPC) monthlymeeting decided to hold interest rates at 6% for the fourth month in a row.A CIMA survey this week also found that more than two-thirds of UK financedirectors want a drop in interest rates.
‘Our members in manufacturing say that the industry is right at the edgealready’, said Claret. ‘The bank’s failure to lower interest rates will effectively increase the strength of the pound in the one market where most of our exports go – Europe.’
He added that CIMA had hoped for a drop in interest rates and that the surveyrevealed a strong sentiment in favour of a decrease.