Commenting on the MPC minutes released today by the Bank of England, David Kern, Economic Adviser to the British Chambers of Commerce, said:

"Given the conflicting risks of recession and higher inflation, we are not surprised a majority of MPC members regard the current "no change policy" as the most appropriate. We expect rates to be held at 5% for another two or three months. 

"However, we remain convinced that the threats of recession are more immediate and severe than the risks of higher inflation. Once it is clear that inflation has peaked, the MPC must cut rates without delay in October or November."