THE interest rate among local businesses was extremely high when the Governor of the Bank of England breezed into Bury on Wednesday (Feb 18).

Mr Mervyn King's visit to the North West was the latest in a series of regional sojourns to gauge the business and economic pulse among captains of industry.

Feedback and comments are taken on board by Mr King and his Bank of England team during consideration of any alteration to the interest rates. The Governor addressed around 50 businessmen and women at a "breakfast briefing" at Bury's Village Hotel on Wednesday. The event was organised by Chamber Business Connection and guests were drawn from the business communities of Bury, Rochdale, Bolton and Oldham.

During the 80-minute meeting, Mr King answered questions from the floor, including posers relating to economic policy and forecasts as well as other key business factors.

Later, Mr King said: "I came to Bury to listen and learn. Every month I go out to the regions to talk to and listen to business people.

"This gives me and my team a better understanding of economic and business conditions all over the country."

This direct intelligence, he disclosed, supplements information from official statistics and business surveys.

Discussions with businesses also enables the Bank's interest rate-setting monetary policy committee to explain the current policy position, the factors influencing interest rate decisions and uncertainties and risks in the economic outlook.

The Governor was upbeat about the latest economic trends, particularly in relation to a welcomed upturn in the troubled manufacturing sector. "Overall, things seem to be improving and the mood is good and positive at the moment," he said.

Mr King stressed he was anxious to avoid the very high double figure interest rates which had damaged British industry in the past.

Commenting on his meeting in Bury, he added: "The views of business people are very important to the whole process of setting the interest rate. We want to take as much as we can into account. This is like a giant jigsaw and our aim is to talk to as many people as possible, get their views and put all these pieces of the jigsaw together."