GUERNSEY businesses’ outlook on the economy has encouraged one of the people responsible for setting the UK interest rate. Kate Barker is one of the nine members of the Bank of England’s monetary policy committee which meets each month.
She was in Guernsey last week to get a first-hand impression of the economy.
‘Guernsey gets our policy without the targets, but because we are setting your interest rates, I feel we have a responsibility to come,’ said Ms Barker.
‘Our visit is two-way. Guernsey gets to speak to us directly and we can learn from them. A lot of businesses here are linked with those on the mainland.’
It was the first time that any member of the committee had been to the Channel Islands.
She said it was important to gauge as much reaction from as many regions as possible, especially with the recent financial market turbulence.
‘We are interested if people have been concerned, but on the whole from what the people we have met here have said, they are still very confident.’
Ms Barker said she felt the present situation was a slowdown in the economy rather than anything more serious.
And she hinted there might be no cut in interest rates next month as some had predicted.
It currently stands at 5.75%, as it has since going up from 5.5% in July.
She said the disruption in the financial markets had started on 9 August, but that responses they had collated had not suggested there had been a big change in attitudes.
‘We [the monetary policy committee] are asking ourselves if things are so different from August and do we actually have to cut rates?’
Her visit was arranged through Commerce and Employment.
She said it was the best route for getting in touch with businesses and the appropriate financial services.
Article posted on 29th October, 2007 - 12.00am
Loading ...
Most Commented: