SmallBusinessNewz

It seems like every economic development these days has a couple of results that most people understand, more that most people don't, and an untold number that nobody knows about.  Yet two small business organizations have announced their approval of the recent interest rate cuts.

The Federation of Small Businesses and Forum of Private Business are pleased as punch about the cuts that have taken place in America, the UK, and various parts of Europe.  The word "inflation" isn't even mentioned in one of the statements they released, and the other says the Bank of England shouldn't worry about it.

As for what else is communicated, "The FPB believes that slashing the cost of borrowing will significantly boost the confidence of the owners of small businesses suffering because of the economic downturn. . . .  It could also encourage more businesses to seek investment from both traditional financial institutions, such as banks, and alternative sources of finance, such as asset-based and invoice finance."

And even as the FPB pushed for more cuts, Jon Wright, the FSB's national chairman, stated, "We would urge the Government, now that it has a stake in the banks, to ensure all base rate cuts announced by the Bank of England are honoured by the clearers."

So we'll give a little cheer for what looks to be a decent development and hope that any necessary follow-ups occur.