Commenting on the MPC minutes published today, David Kern, Economic Adviser to the British Chambers of Commerce, said:
"This situation, though not unique is unusual, and highlights the exceptional uncertainties facing the MPC. The risks to both growth and inflation have worsened in recent months.
"With business confidence falling, we believe the risks to growth are more severe and more threatening at present. Any increase in interest rates would be very dangerous. The results of the BCC's recent Quarterly Economic Survey produced very pointed warnings. While the MPC is required to bring inflation back to its 2 per cent target, its remit gives it latitude to do so in a fashion which does not damage the economy.
"It is very important to avoid monetary overkill. Inflation is likely to peak in the next few months, and the MPC should then be able to consider small cuts in interest rates."