Trade welcomes Bank’s decision on interest rates

The Bank of England‘s decision to leave interest rates at 4% for the time being has been welcomed by the industry and its associates.

Richard Lambert, director of the British Woodworking Federation, said: ‘Manufacturing has recovered over the past year to 18 months but it is still fairly precarious and any increase in interest rates is going to make life very difficult, particularly for smaller businesses.

‘So while we understand concerns being raised about pressure in the housing market, that isn’t the entire economy. I think we can see that at some point interest rates will rise because that is simply the economic cycle.

‘Meanwhile, things are being kept within the chancellor’s targets and we are trying to operate within a low interest economy which, from a business perspective, is very good.’

Allen Wilén, economics director at the Construction Products Association, said: ‘Any increase at this stage would have jeopardised the recovery of manufacturing and pushed up the value of the pound against the euro, which is beginning to settle at a more sustainable level.’

He urged the Bank of England to be cautious when considering any future increase adding: ‘We cannot allow housing to become a brake on economic growth when the rise in house prices is being exacerbated by the inadequate provision of housing due to excessive planning restrictions and delays.’

Sign up for our weekly news round-up!

Give your business an edge with our Timber Trades Journal.

Sign up