5 April 2001, 16:04 UK CBI applauds BoE for acting to soften impact of U.S. slowdown on business
LONDON (AFX) - The Confederation of British Industry applauded the
Bank of England for acting to soften the business impact of a slowdown
in the U.S. economy.
Responding to the BoE's decision to cut its repo rate by 25 basis
points to 5.50 pct, CBI director-general Digby Jones said he does not
expect the UK to go into recession, "but it is clear there are stormy
waters ahead".
Jones said both the manufacturing and service sectors are seeing
effects of the problems in the U.S., and that although the UK's
economic fundamentals are strong, "down the line business pessimism
could feed through to consumers".
"With earnings still subdued, despite a fall in unemployment, this
was a good time to take preemptive action," he added.
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