LONDON (AFX) - The British Chambers of Commerce welcomed the decision by the Bank of England's Monetary Policy Committee to cut interest rates by a quarter of a percentage point to 5.5 pct.
Chief economist Ian Fletcher said it was a "responsible" step that will help "shore up business confidence in the face of deteriorating global economic conditions and the foot and mouth outbreak at home". Fletcher said: "Against the backdrop of a prudent budget, and almost two years of below target inflation, the Bank had ample scope to reduce interest rates."
However, he cautioned that the MPC must "remain on high alert" to act with further cuts in the months ahead.