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

“The MPC has made the right decision to keep interest rates and quantative easing on hold. Our latest Quarterly Economic Survey shows that intentions to increase prices have decreased, and the fall in inflation over the past year has effectively raised interest rates in real terms for businesses and consumers alike.

“However, the MPC’s job may become more complicated in the coming months as inflationary pressures have stabilised, oil prices have begun to reclaim lost ground and wages are on the rise. But these developments in no way justify an increase in interest rates. Business confidence would be strengthened if the MPC confirms that interest rates will remain low for the foreseeable future – providing firms with the security they need to invest.”