Commenting on the Inflation Report published today by the Bank of England, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:

“The report acknowledges that inflation is likely to breach the 3% level over the coming months. However, we believe that this is a temporary spike – and are pleased that the MPC seems unlikely to overreact by raising interest rates. It is also welcome that the £200bn Quantitative Easing programme is likely to be maintained for the time being.

“We believe that the growth forecast in the report may still be unduly optimistic.  There remains a significant danger of the economy slipping into a double-dip recession. The Bank and the Government must use all the tools at their disposal to prevent this from happening.”