Skip to main content

Manufacturing Industries

Volume 494: debated on Wednesday 17 June 2009

To ask the Minister of State, Department for Business, Innovation and Skills what assessment he has made of the effects of Bank of England interest rates on levels of manufacturing output in each of the last 12 months; and if he will make a statement. (278852)

No assessment of the effects of Bank of England interest rates on levels of manufacturing output in each of the last 12 months.

However, the reduction in the bank rate to a record low of 0.5 per cent. in March 2009, along with a £125 billion programme of quantitative easing, and fiscal support from both discretionary fiscal action and automatic stabilisers worth 4 per cent. of GDP in 2009-10, has formed part of a strong macroeconomic policy stimulus to the economy. These actions help provide the conditions for a UK economic recovery. The world economy is experiencing its first recession since the second world war, driven by the global financial crisis, and governments around the world have adopted similar policies to those in the UK to help encourage a return to growth.