Commenting on the Bank of England’s quarterly inflation report David Kern, Economic Adviser to the British Chambers of Commerce, said:
“The new quarterly inflation report, published today, signals that a further increase in interest rates to 6 per cent is likely in the not too distant future.
“The report also provides powerful support for our own view that there is a greater need for caution now on the part of the MPC. The report confirms that growth in demand is falling and that this is likely to continue.
“Whilst we are not convinced that a further increase in rates is necessary, as such a move would cause damage, British business would have to take it on the chin, However we hope that 6 per cent would be the peak and no further increases will be implemented. “