LONDON (AFX) - The quarter point cut in the UK repo rate to 5.50 pct is the "right response" in the face of fragile confidence in the major world economies, according to the Engineering Employers' Federation.
"Today's cut in rates is the right response by the (Bank of England's) Monetary Policy Committee to fragile markets and will give manufacturers' confidence a welcome shot in the arm," said EEF chief economist Stephen Radley.
"With inflation remaining under control, manufacturing will look to the Bank of England to keep a very close eye in the coming months on the state of the world economy and its impact on Britain," he added.