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16/08/2001
CBI chief says further rate cut is possible
CBI chief Digby Jones has predicted that interest rates could come down another 0.25 per cent before the end of the year.
Opening new office for the CBI on a fact-finding visit to Northern Ireland, the CBI Director General said that although there were inflationary pressures within the economy they should not be sufficient to deter the Bank of England Monetary Policy Committee from making a further cut in interest rates.
He said: “The latest earnings data suggest there remains room for a further cut in interest rates. Inflation remains well under control. That is good news because it suggests there remains scope for a further cut in interest rates to soften the impact of the global slowdown.
He said that an interest rate cut could be used to boost the UK’s battered manufacturing sector, which the CBI predict could shed another 29,000 before the end of the year.
Mr Jones said: "Employment has risen overall but manufacturing has seen more than 120,000 job losses over the past year. The sector is facing serious problems and there are real signs that service sector growth is starting to come off the boil."
In relation to Northern Ireland, Mr Jones said that the province had particular problems which could have a negative influence on the economy. These included the land border with an adjacent eurozone in the Republic of Ireland, and a public sector economy - important factors were not well understood by the British government.
He said that the CBI had a key role to play in highlighting these issues and to help the Northern Ireland Executive develop effective policies for business in the province. (SP)
Opening new office for the CBI on a fact-finding visit to Northern Ireland, the CBI Director General said that although there were inflationary pressures within the economy they should not be sufficient to deter the Bank of England Monetary Policy Committee from making a further cut in interest rates.
He said: “The latest earnings data suggest there remains room for a further cut in interest rates. Inflation remains well under control. That is good news because it suggests there remains scope for a further cut in interest rates to soften the impact of the global slowdown.
He said that an interest rate cut could be used to boost the UK’s battered manufacturing sector, which the CBI predict could shed another 29,000 before the end of the year.
Mr Jones said: "Employment has risen overall but manufacturing has seen more than 120,000 job losses over the past year. The sector is facing serious problems and there are real signs that service sector growth is starting to come off the boil."
In relation to Northern Ireland, Mr Jones said that the province had particular problems which could have a negative influence on the economy. These included the land border with an adjacent eurozone in the Republic of Ireland, and a public sector economy - important factors were not well understood by the British government.
He said that the CBI had a key role to play in highlighting these issues and to help the Northern Ireland Executive develop effective policies for business in the province. (SP)
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14 August 2001
Inflation rate fall may herald a further interest rate cut
Speculation is growing that a fall in the underlying inflation rate, down to 2.2 per cent, may give the Bank of England’s Monetary Policy Committee further room for manoeuvre to lower interest rates. Continued severe pressure on manufacturing industry has prompted further calls from industry leaders seeking another cut in the UK interest rate.
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Speculation is growing that a fall in the underlying inflation rate, down to 2.2 per cent, may give the Bank of England’s Monetary Policy Committee further room for manoeuvre to lower interest rates. Continued severe pressure on manufacturing industry has prompted further calls from industry leaders seeking another cut in the UK interest rate.
07 November 2002
Bank of England holds UK interest rate at 4%
The Bank of England has held the main UK interest rate at 4% for the twelfth consecutive month. This is despite a larger than anticipated cut by the US Federal Reserve. Leading economists were split on whether or not interest rates would or should be dropped.
Bank of England holds UK interest rate at 4%
The Bank of England has held the main UK interest rate at 4% for the twelfth consecutive month. This is despite a larger than anticipated cut by the US Federal Reserve. Leading economists were split on whether or not interest rates would or should be dropped.
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Northern Ireland WeatherToday:A mostly cloudy start with scattered showers, the showers becoming more isolated and largely confined to the south this morning. Becoming brighter this afternoon, the best of any sunnier spells across northern counties. Northerly winds easing. Maximum temperature 12 °C.Tonight:A dry evening with late sunny spells and some long clear spells overnight. Becoming cloudier across the north towards dawn with a few showers possible. Touch of frost in south. Minimum temperature 0 °C.
