Following the decision today to keep interest rates on hold the CBI is calling on the Bank of England to cut interest rates in May.
CBI Chief Economic Adviser, Ian McCafferty, said: "The timing of this decision was clearly difficult. It's too early to assess the full implications of the Budget and much remains to be resolved in the Middle East. But the case for a rate cut is becoming increasingly compelling.
"In recent months the economy has weakened further and a marked slowdown in consumer spending has become apparent. This at a time when there are few signs of improvement in the international outlook and manufacturers continue to struggle.
"The ending of the war in Iraq will remove some of the short term uncertainties that have sapped business confidence but fundamental worries remain that will hold back the recovery for some time.