The timber trade has welcomed the Bank of England‘s move to cut interest rates but warned other economic factors would play a bigger role in the financial future of the industry.

The Bank cut interest rates by quarter of 1% to 5.25% on Thursday, with Timber Trade Federation chief executive John White saying “it’s unlikely to have a big impact”.

“Any interest rate cut is welcome but you need to look at the wider economy to assess the situation,” said Mr White.

“The strength of the pound is important and as it weakens imports and products become more expensive. It’s unlikely to have a big impact on the trade as its being driven by wider global issues.”

British Woodworking Federation chief executive Richard Lambert mirrored this view and added that ensuring the stability of the economy was important.

“It will ease the pressure within the market but the important thing is that the economy is kept stable,” he said.

“Inflation control is good but you don’t want to put the brakes on so hard that it forces a recession.

“There’s a risk that we’ll talk ourselves into a recession. A cautious outlook is good but let’s stay positive until something happens.”