Interest Rates Cut
Written by JDPGlobal | Thursday, 04 August 2005
The Monetary Policy Committee (MPC) has decided to cut interest rates to 4.5 percent. This cut was widely anticipated by the city and most analysts will not be alarmed. The 4.75 percent rate has been in place since the 8th August of last year.
Analysts predicted this cut owing to wide-spread concerns about the growth of the economy and the slowdown of consumer spending. The other reason many economists have cited over the cut was the manufacturing sector which seems to be in a recession.
The city has welcomed the cut. A spokesperson for a large retail bank in the square mile commented that the cut was the correct and proportionate response.
The British economy has risen below expectations over the last four quarters, in fact our team of researchers have identified this economy as having performed the worse over the last ten years.
