NEWS RELEASE
Thursday 09 September 2004
STUC welcomes Bank of England's decision to hold interest rates
The STUC today broadly welcomed the decision of the MPC to hold interest rates.
STUC Assistant Secretary, Stephen Boyd said:
"The STUC believes the decision of the MPC to leave interest rates at 4.75% is the right one for the economy. Further rate rises at this time would be damaging to the Scottish economy. Recent rises appear to have done the job in cooling the housing market and reining in consumer spending."
The STUC, however, called for a period of stability.
"A period of stability is necessary now. There is continued confusion over the extent of the recovery of the manufacturing industry and Scottish manufacturing still lags behind the rest of the UK we are convinced further rate rises will impede any tentative recovery."
"The MPC must now heed the call of the trade union movement by keeping rates on hold and allowing a period of stability to ensue."
Ends
For further details contact:
Stephen Boyd