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

“The decision to keep interest rates and the level of QE on hold was unsurprising given the current economic backdrop. While earnings are edging up slowly, they are not increasing at a pace that should cause concern in the near future.

“It is also reassuring that, as in previous months, only one member of the committee voted in favour of an immediate increase in rates. Since the last meeting, inflation has fallen into negative territory and it is likely to remain below the 2% official target until well into 2017.

“Although the UK recovery remains on course it is facing headwinds. GDP growth slowed to 0.5% in the third quarter, exporters are facing challenges, and while services firms are growing, the manufacturing and construction sectors recorded declines in the third quarter.

“British businesses need a prolonged period of stability and the present low level of interest rates should be maintained until well into 2016.”