BPF Comments on Interest Rate Rise

The Bank of Englands shock interest rate rise last week has now become apparent by the bad inflation figures released on the 16th of January. The Consumer Prices Index jumped to an 11 year high of +3% in December and the RPI which guides wage settlements jumped 0.5% to 4.4%. The RPI figure is now at its highest level since 1991.

Peter Davis, Director General of the BPF, commented this is most unwelcome news for our hard pressed companies who are struggling with the highest energy costs in Europe. This and the possibility of further interest rate increases will curb investment and demand for our industrys products. Let’s not forget that household debt levels in the UK at £1,300 bn. more than 100% of GDP, the highest in the G7 countries and 30% of Europe’s total debt. Theres bound to be a reduction in consumer demand caused by this.

Commenting further, Davis said The UK Trade deficit rose in November from £4.1bn. to £4.7bn. For goods alone the deficit was more marked £6.6bn up to £7.2bn, a 9% increase. It’s insane that the Government is cutting support for exporters.

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For further information on this press release, please contact Thom Lant, British Plastics Federation, 6 Bath Place, Rivington Street, London, EC2A 3JE, tel 020 7457 5032, fax 020 7457 5001, email: [email protected]

Notes for editors

1) British Plastics Federation (BPF) is the UK trade association for the plastics industry – representing the whole supply chain including polymer producers, distributors, additives suppliers, machinery manufacturers, processors and recyclers.