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05 August 2016

FSB in Northern Ireland welcomes historic interest rate cut

RESPONDING to the Bank of England’s decision to cut interest rates, FSB Policy Chair for Northern Ireland, Wilfred Mitchell commented:

“Small businesses are operating during a period of significant political and economic uncertainty. In this challenging environment, it is encouraging to see the Bank of England taking decisive action to boost the economy.

 “This new historic low in interest rates should lead to cheaper borrowing costs, making finance more affordable and helping to support business investment. Small firms will also welcome the local boost to household spending power and consumer demand.”

 Mr Mitchell concluded:  “FSB research carried out before the EU referendum showed small business confidence had fallen to a four-year low.  Our members do have concerns about the longer term economic outlook.  

"There is a real risk that sterling will depreciate even further, which could benefit the UK’s visitor economy and small exporters, but could also affect prices, inflation and investment. Medium-term forecasts indicate a slowing of the economy. Therefore, FSB urges the Northern Ireland Executive to assess the effects of today’s cut and make it a priority within the Programme for Government (PfG) to boost economic confidence and growth.”

Read more about Wilfred Mitchell