A DELEGATION representing hundreds of East Lancashire manufacturing firms grilled one of the men responsible for setting interest rates.

Members of the East Lancashire Chamber of Commerce joined forces with other North West Chambers to meet Professor William Buiter.

Prof Buiter is a member of the monetary policy committee which sets interest rates.

The meeting follows thousands of job losses announced by local manufacturers with many blaming the strong pound for making their exports uncompetitive and imports too cheap.

"During the meeting he emphasised that the Government had given the MPC just one task, to meet an inflation target of 2 per cent and with just one tool of interest rates to achieve it," said Michael Damms, chief executive of the East Lancashire Chamber.

"At least this confirms where the current responsibility for damage to our manufacturers and exporters lies -- firmly with the Government's economic policy."

Now the Chamber is to step up its campaigning on behalf of local manufacturers.

"One slight consolation from the debate was the hint that interest rates may comes down in bigger steps than they went up by," said Mr Damms.

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