From the
organisers of
Hillhead logo

CPA calls for further cuts in interest rates

 

"LAST month the Bank of England's Monetary Policy Committee voted to reduce interest rates by 0.25% to 5.75%, a move which the Construction Products Association is hoping will be the first of several steps in lowering interest rates in the UK.

A week before the Policy Committee's meeting on 8 February, CPA president Roy Harrison wrote to Sir Eddie George, Governor of the Bank of England, to underline the Association's concerns regarding monetary policy. In particular, he highlighted the industry's need for lower interest rates as soon as possible to help recover its competitiveness.

 

Referring to the findings of the CPA's latest trade survey, Mr Harrison said that while bad weather and rail disruptions had added to the industry's problems during the fourth quarter of 2000, the poor product sales recorded during that quarter also reflected an underlying slowdown in the number of new private sector projects.

He also warned that the strength of the pound, particularly against the Euro, was helping overseas suppliers to gain market share while UK exporters were often faced with intense competition from Euro zone competitors.

'Although the industry remains cautiously optimistic for 2001 as a whole, the weak finish to 2000 appears to have tempered expectations for the current quarter.

'An early cut in interest rates would both soften the impact of slowing private sector growth and allow UK firms to begin to address the current trade imbalance,' said Mr Harrison."

 

 

Latest Jobs