Do you think the UK should encourage business in the manufacturing sector to expand its output and take up..>?
Do you think the UK should encourage business in the manufacturing sector to expand its output and take up the decline experienced by the service sector and help the economy out of these recent problems?
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Comment by markyboy1888
yes.
Posted on September 2, 2010 at 2:06 pm
Comment by Eddy T
This the main purpose for the massive cut of 1.5% in interest rate by the Bank of England. To make more loans to this sector cheaper so that they can have the capital to produce more goods for export. The cheaper pound will also make more and cheaper goods to be exported.To earn more foreign exchange profits. To make up for the slowdown of the service sector. The loss in foreign exchange profits in this sector due to the less tourist coming into UK because of the world economic slowdowns. Banks should be requested to lend out more cheap loans to this sector rather than being pressured by the government to cut interest rate to their existing borrowers. Eventually also banks will have to cut interest to their customers in order to stay competitive and supporting the Bank of England rate cut.
Posted on September 2, 2010 at 2:50 pm