Small businesses urge no more rate cuts

SMALL business in Weston-super-Mare are calling for the Bank of England to hold fire on any further interest rate cuts.

SMALL business in Weston-super-Mare are calling for the Bank of England to hold fire on any further interest rate cuts.

The town's branch of The Federation of Small Businesses (FSB) has made the plea ahead of the monetary policy committee's decision tomorrow on any changes to the interest rate.

Figures from a survey of over 4,000 small businesses show that the recent rate cuts have not provided the boost to the economy that many hoped for.

According to the poll more than 63 per cent want the BoE to keep rates at their current level of 1.5 per cent.


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Only a quarter said they would like a rate decrease - down from 58 per cent who called for a rate cut in a similar survey conducted in December 2008.

This indicates small businesses are not feeling the impact of the interest rate cuts and that access to finance, rather than the cost, remains a key problem.

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Weston's FSB chairman, Steve Sharp, said: "These figures suggest that the recent interest rate cuts are not having the desired effect and other means of economic stimulus are required.

"Small businesses in Weston-super-Mare are clearly worried that this monetary policy has been used extensively over the last few months yet they are still struggling to access cheaper finance.

"The concern now is that if rates are cut any further there may not be too much more room for manoeuvre in the economy. The onus is really on the banks to start promoting these lower rates to fire up the economy.

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