09 August 2001
CIPS has welcomed the Bank of England's interest rate cut of 0.25 per cent to 5 per cent, the lowest rate since August 1999.
"We have been calling for a cut, especially to help the manufacturing sector that has been in the doldrums for five months and getting worse," said Melinda Johnson, CIPS's head of policy.
This is the fourth time this year the bank has cut the cost of borrowing. According to the latest purchasing managers' index from CIPS, the manufacturing sector contracted further in July, with intermediate goods makers being hit particularly hard.