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The Association for Consultancy and Engineering (ACE) has called for caution over interest rates as the Monetary Policy Committee (MPC) of the Bank of England meet.
ACE believes that the recent recession has highlighted the challenge for policymakers in creating the economic ideal of continuous stable growth, low unemployment and low inflation. ACE notes that we have seen an unprecedented global effort to combat the effects and causes of the recession. The MPC must also factor into any decision the unprecedented levels of sovereign debt, fragility of international markets and the potential scale of the looming public sector cutbacks.
Nelson Ogunshakin, ACE chief executive, said: “The credit crisis has shown the importance of confidence within markets. The Bank of England has played a vital role in providing certainty at a time when markets were in meltdown. An unchanged Government inflation target has helped to add credibility, while the MPC’s independence and attention to detail has formed the basis of informed policy decisions which underline their continuing effort to balance inflationary pressures against other economic uncertainties: this is not a simple task. Although inflationary pressures may ease given the spending cuts, and spare capacity within the economy, it is good news to see that the threat of further inflationary pressure is taken seriously, especially at a time when consumers’ spending power is being eroded and pay freezes are looming.”
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For press information please contact Simon Goldie on 020 7227 1892 or 07905 279328 – sgoldie@acenet.co.uk
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