The latest from the Black Country 

BCC: MPC Must Continue with Low Rates to Support Business Confidence

Commenting on today’s Monetary Policy Committee (MPC) interest rate decision, David Kern, Chief Economist of the British Chambers of Commerce said:

“The MPC made the right decision to keep interest rates and quantitative easing on hold, particularly at a time when inflation is down to zero and likely to fall into negative territory in the next few months.

“Although wages are now rising, the recent increase has been modest. Our latest Quarterly Economic Survey* shows that intentions to increase prices have fallen noticeably; reinforcing our view that inflation will remain low. While official interest rates are very low, the fall in inflation over the past year has effectively raised interest rates in real terms, for both businesses and consumers.

“The UK recovery is on course, but remains fragile and should not be unsettled by an unnecessary interest rate rise. Business confidence will be strengthened if the MPC states clearly that official interest rates are likely to stay at their low levels for at least another 12 months.”

News Categories

We use cookies to improve our website and your experience when using it. Cookies used for the essential operation of the site have already been set. To find out more about the cookies we use and how to delete them, see our Privacy Policy.

I accept cookies from this site

EU Cookie Directive Plugin Information