Economy gets confidence boost

Mon, 17 Nov 2008 22:23:40 +0000

Sheffield Chamber of Commerce believes the unexpected one and a half per cent cut in interest rates could provide a confidence boost in the run-up to Christmas to kick-start the economy.

Chief Executive Nigel Tomlinson this afternoon (Nov 6) spoke of the “unexpected surprise” of a reduction in interest rates by the Bank of England’s Monetary Policy Committee.

“We had always hoped that it would be seen that recession was the key issue to be tackled and therefore had hoped for a one per cent cut in interests rates,” said Mr Tomlinson.

“However the extent of the reduction is an unexpected surprise – perhaps indicative that the Bank of England realises there has been a marked deterioration.

“The move, which should not be viewed as a short term panic measure, should instigate a level of confidence in the run-up to Christmas and, we hope, provide a starting point for other fiscal measures to follow to address the current economic conditions facing businesses.

“The reduction should help ease conditions, particularly if the banks and building societies pass on the benefits to their customers and mortgage holders as we would like to see take place,” added Mr Tomlinson.

Sheffield Chamber of Commerce - Items tagged 'economic_climate'

Economy gets confidence boost

Sheffield Chamber of Commerce believes the unexpected one and a half per cent cut in interest rates could provide a confidence boost in the run-up to Christmas to kick-start the economy.