17-01-2008
BCC calls for interest rate reduction
News by Adfero for Simply Business - independent providers of business insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
The British Chambers of Commerce (BCC) has called for a cut in the UK's interest rates.
Despite interest rates being currently set at 5.5 per cent, the BCC believes that interest rates should undergo a further cut, as there are indications that the UK's economic performance deteriorated during the latter months of 2007.
"The latest results show the tough position that the [monetary policy committee] is in as it contemplates its next move," said David Kern, an economic advisor to the BCC, an organisation that runs on a not-for-profit basis.
"If the right policies are adopted the damage associated with an economic slowdown can be limited."
Specifically, the BBC has highlighted data from its latest report, showing that over the course of the last three months of 2007, there was a decline in activity in the UK's service sector.
The BCC described the fall as "disturbing".