He stuck to his guns on no increase in base rate until unemployment down to 7% (subject to inflationary pressures) which is good news. He did however explain why he thought it would take a while to get unemployment down (as companies produce more they will offer more hours to part-time staff etc rather than hire new staff + it will need 1M new jobs given the likely drop in employment within the public sector).
He also said that when the top 8 banks hit 7% reserves then he will allow them to spend more of their liquid funds so that should mean more access to finance at last (but his may take until the end of the year).
He applauded the diverse range of businesses in our area and thought we were a great indicator for the economy – no surprises there.
It is great to have had his first public speech here in the East Mids and to have our region well in mind – well done IoD, DNCC and CBI for coming together on this event. (Posted by Mel for Murray Macnab).
