CBI backs government financial plans

by Richard Kilner

Story link: CBI backs government financial plans

The financial package put forward by the government today in a bid to ease the financial crisis has received the support of the Confederation of British Industry (CBI).

In addition, the CBI has repeated its call on the Bank of England to reduce interest rates by 50 basis points at the next opportunity.

The Monetary Policy Committee, which decides interest rates, begins a two day meeting today and will reach its decision regarding rates tomorrow.

Deputy Director-General of the CBI, John Cridland, has welcomed the plan, which he describes as containing essential measures, adding that it will help improve financial stability.

Cridland went on to say that British businesses were facing difficulties in bank finance, and that a half point cut in rates would help bolster consumer confidence.