THE EEF (Engineering Employers' Federation) says it is deeply disappointed by last week's decision to leave interest rates unchanged.

It believes a further cut would have provided much-needed support for hard pressed businesses.

In particular, the EEF believes that because inflation has been substantially below target for so long at a time when manufacturing remains firmly depressed, there remains a strong case for a further quarter point cut next month.

Andrew Semple of EEF in the North West said: "This is a missed opportunity to boost business confidence and give short

term support to a manufacturing sector which remains firmly depressed.

"With inflation so low and real interest rates relatively high, manufacturers

will find it hard to understand the reluctance to countenance any further

reductions interest rates."