Press Release

For immediate release

Thursday4 September 2003

IoDnot surprised by interest rates decision

The Institute ofDirectors (IoD) said it was not surprised by today's decision by the Bank ofEngland's Monetary Policy Committees to leave interest rates unchanged.

Ruth Lea, Head of thePolicy Unit at the IoD, said:

"We are entirelyin agreement with the Monetary Policy Committee in their decision to leaverates unchanged this month. There are some tentative signs of recovery in theeconomy, and the predilection for the British consumer to accumulate debtshould be a worry for policy makers. But, having said that, we do not expect arobust recovery in the second half of this year. Moreover, the economy is badlyout of balance - with growth in the domestic economy, but a stubbornly largetrade deficit.

"The globalsituation continues to be a concern, even though there are some moreencouraging signs out of the Eurozone countries and, particularly, the US. Wedo not expect a return to rapid growth in the near-term. This will inevitablyhold back Britains export sector.

Ends 4.9.03 No.196

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Contact Points:

Ruth Lea, Head of thePolicy Unit, tel. 020 7451 3116

Richard Taylor, PressOfficer, tel. 020 7451 3264

Mobile and out of hours. 07721 734886

Email. press@iod.com

Web. www.iod.com

Noteto editors

TheInstitute of Directors is a non-party political independent organisation witharound 55,000 members. In addition to its wide range of business services, theIoD provides an effective voice to represent the interests of its members togovernment and key opinion-formers. It also brings the experience of businessleaders to bear on the conduct of public affairs