Commenting on today’s interest rate decision by the Bank of England’s Monetary Policy Committee, David Kern, BCC Chief Economist, said:

“Given the current global economic backdrop, the decision to leave interest rates and QE on hold was not surprising.

“Business investment depends upon confidence, but the divergent actions of other major central banks - with the US Fed edging rates up and the ECB reducing them – is likely to increase the turmoil in the global financial markets and strengthens the argument for the UK to maintain a stable stance.

“UK inflation is likely to edge up very slowly, and our main priority should be to avoid any action that would put our fragile recovery at risk. Therefore, the MPC should keep rates on hold until much later in the year.”