Bank Of England Holds Its Breath For The Budget

12.00.00am UTC (GMT +0000) Thu 20th Mar 2003

Commenting on the release this morning of the Monetary Policy Committee's minutes for its March 5-6th meeting Matthew Taylor MP, Liberal Democrat Shadow Chancellor, said:

"The Bank has underlined the precarious state of the economy - with investment plummeting and growth weak."

"The MPC made it clear that the Chancellor's budget could significantly change the economic outlook. The Bank and businesses are holding their breath."

"Gordon Brown must make sure that the Budget provides reassurance to families and businesses, rather than adding to current uncertainties."

ENDS

Notes to editors

1. This morning's MPC minutes noted that 'demand prospects were weaker than expected... some signs that output in the first quarter of 2003 was likely to be lower than the Committee had projected; investment remained weak'

2. The minutes also reveal that one of the reasons that the committee made the decision not to change interest rates was that 'the outlook for UK demand might be affected by the Budget next month'.