UK IoD sees BoE cutting rates later this yr despite today's action 05.06.2003 13:03 Headlines
LONDON (AFX) - The Institute of Directors said it expects the Bank of
England to resume cutting interest rate later in the year despite today's
decision to keep it at 3.75 pct.
"This month's decision by the Monetary Policy Committee to leave rates
unchanged does not surprise us. But we expect further easing later this year.
There is little doubt that the global economy is in the doldrums with the major
economies all having deep-seated problems," Ruth Lea, head of the IoD's policy
The poor global outlook, with Germany becoming of "particular concern" to
the IoD, continues to drag the British economy, she said.
Domestically, consumer spending and the housing market, the parts of the
economy that underpinned growth last year, do now seem to be moderating.
That, and the tax increases, will hurt business and consumer confidence, she