Interest Rate Cuts Alone Will Not Stave Off the Credit Woe ; Economy Boe May Have Got the Focus Wrong, Says Region's Firms

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The region's business and professional community last night generally welcomed the Bank of England's decision to cut interest rates to the lowest in the bank's history but with many warning the focus may be wrong in trying to stimulate the ailing economy.

Birmingham and Solihull chambers warned against printing more money to ease the financial crisis after reports the chancellor is considering the measure - "forceful quantitative monetary easing" - but said it is likely to lead to inflationary pressures.

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Interest Rate Cuts Alone Will Not Stave Off the Credit Woe ; Economy Boe May Have Got the Focus Wrong, Says Region's Firms

Katie Teasdale, the BCI's senior policy adviser, said: "Today's cut by 0.5 per cent will provide a welcome confidence-booster to all sections of business. But it is clear an interest rate cut alone is not the magic bullet to 'solve...

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