Press Room
Grant Thornton's Chief Economist assesses implications of MPC
rate cut
If you are writing
about the effect of the Bank of England's interest rate decision on
UK businesses, please consider the comments below from Grant
Thornton's Chief Economist Stephen Gifford:
"Under intense pressure from all angles including the
manufacturing industry, financial services sector, retailers and
banks, the Bank of England has had no option but to continue
slashing interest rates. Today's 1% cut is no surprise as the Bank
of England works frantically to put the economy back on a steadier
albeit slow and uncertain road."
"It will take many months before the full effect of the last few
month's dramatic cuts feed through to consumers and help steer the
UK economy out of what is predicted to be a long and deep
recession. These interest rate cuts, combined with last week's
massive fiscal injection by the Chancellor, are the first steps on
the way to restoring much needed confidence but the economy still
has a long way to go."
"As unemployment figures grow to more depressing heights, share
prices remain volatile and the pound continues to plummet, the MPC
will have to think long and hard on how to use their economic
acumen to turnaround this economic land lock."