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10 September 2008 Interest rates decision ‘an opportunity missed’, claims FPB

The Bank of England’s decision to keep interest rates on hold has been described as ‘another opportunity missed’ by a leading business group.

The Forum of Private Business (FPB) claims a cut in interest rates would help stimulate much-needed business growth during the current economic downturn.

Earlier this month the Bank held interest rates at 5% for the fifth month in a row, as the country grapples with a slowing economy and soaring inflation.

Nick Palin, the FPB's Director of Finance and Administration, said: ‘A rate cut would have boosted small firms' confidence, as well as that of consumers, and would have helped them trough the difficult times that they face in the current credit crunch.

‘Instead, small firms will feel disappointed and abandoned yet again, as they have done for the past five months.’

A recent study by the FPB revealed that 59% of the small business owners questioned believe spiralling interest rates have had a ‘negative’ or ‘very negative’ impact on investment.