Rate Cut Joy for Business

4 August 2005

Today's quarter point cut in interest rates by the Bank of England will be greeted with a huge sigh of relief from the business community, the Institute of Directors (IoD) said.

Graeme Leach, Chief Economist at the IoD, said:

"The IoD had called for a quarter point reduction in interest rates and so today's decision by the Bank was welcome news. Failure to cut rates now could have seen a more pronounced 'shift-to-thrift' by companies and consumers. The new lower rate of 4.5 per cent will help put a floor under business investment and household spending growth."