THE cut in interest rates announced by the Bank of England has been welcomed by the Royal Institute of Chartered Surveyors.

Spokesman for the institute's West Midlands region, Harvey Williams, said the reduction, of one-quarter per cent, was good news for manufacturing.

"We are delighted that the Monetary Policy Committee has chosen to reduce rates and support our country's manufacturing base and it is particularly good news for the West Midlands," said Mr Williams. "The UK's manufacturing industry is most concentrated in this region and proportionately makes up a far larger percentage of our working population than in other parts of the country."

Downturn

Mr Williams said he hoped the MPC's decision to cut interest rates would help to reverse the "worrying" downturn in the region's industrial sector during the past year.

"Many commentators have been painting far too rosy a picture of our economic situation and the RICS has continually warned that higher consumer confidence alone does not provide an accurate reflection," he said.

"With the housing market, for example, which has been sited as a positive indication of our economy's health, we can confirm that purchasers are already starting to become more cautious.

"I am very encouraged, especially from a regional perspective, that the Bank of England's MPC is starting to look at the bigger picture."