Manufacturers attacked the Bank of England yesterday for holding interest rates at 4 per cent for the 13th successive month - but business and mortgage lenders broadly welcomed the decision.
The different responses reflected the dilemma facing the Monetary Policy Committee in trying to address the imbalance between a strong consumer sector, buoyed by record increases in house prices and household debt, and a weak manufacturing industry.
By contrast the European Central Bank's half percentage point reduction to 2.75 per cent was welcomed almost unanimously for helping to stimulate British export markets in Europe.
The Engineering Employers' Federation said recent poor business data had justified a rate cut to bolster business confidence.
