Bradford bosses have hit out at the Bank of England decision to only cut interest rates by a quarter per cent.

But home builders have welcomed the number of building societies cutting interest rates following the announcement and say it will give a boost to the home-buyers' market.

Trevor Thomspon, regional director of Wimpey, said: "The interest rate drop is a positive step in the right direction which will help the housing market. Today's news means it's never been a better time to buy."

Bradford Chamber of Commerce said the rate reduction was welcome but "cold comfort for many manufacturing firms in Bradford."

Mark White, the Chamber's policy and research executive, said: "The Chamber welcomes the quarter per cent cut but it is cold comfort for many manufacturing firms in Bradford.

"The combined impact of the high pound, the turmoil in Asia and high interest rates have created a desperate situation for many businesses in the city."

He said the manufacturing sector relied on exporting for its survival and urged further interest rate cuts if firms were to avoid further job losses."

David Sutcliffe, chairman of Bradford textile firm Benson Turner, said: "The quarter per cent cut is not enough but it is a step in the right direction."

Mr Sutcliffe is also chairman of the Regional Innovation Board for Textiles and Clothing which has come up with a plan to help the textile industry fight against mill closures, job losses and putting workers on short time.

David Wilkinson, chief executive of Bradford & District Training & Enterprise Council, is the former director of the Chamber.

He said: "This is a good sign and we hope it will have an effect in the markets and on local companies."

Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.