Responding to today's 0.5% cut in official Bank Rate, John Philpott, Chief Economist at the Chartered Institute of Personnel and Development (CIPD) said:
The Monetary Policy Committee is right to cut Bank Rate to 1% even though some question the merit of doing so without greater effort to increase the availability of credit to hard pressed businesses. Either way, however, with conditions in the job market deteriorating rapidly what's needed now to stem the rise in unemployment is early action to boost the supply of money to our cash strapped economy.î
Rate cut right decision but jobs market needs more radical monetary easing
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