AN engineering employers' organisation has called for a cut in interest rates because the economy is so buoyant.
The Engineering Employers Federation (EEF), which represents more than 400 companies employing 60,000 people in the North-East, said the move would reflect growing confidence in the manufacturing sector.
Last Friday, the CBI, the Institute of Directors and the Chamber of Commerce welcomed the Bank of England's decision to keep interest rates at 4.75 per cent, the sixth month in a row that rates have stayed the same.
EEF Northern's regional director, Alan Hall, said: "Our members are reporting a very good business climate, and I see no reason why interest rates should not be cut from 4.75 per cent to 4.5 per cent, and edge back to 4 per cent next year.
"Interest rates have been edging up over the past 18 months, and perhaps the time has come to review that."
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