Commenting on the Monetary Policy Committee (MPC) minutes, published today by the Bank of England, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:

“We are pleased that the MPC considered reducing the interest rate offered to banks on reserves held at the Bank of England. But, we are disappointed they decided not to adopt such a move.

“The minutes suggest that no further increase in quantitative easing will be considered before February. This may prove risky if the economic situation does not improve.

"The main limitation of the QE programme so far has been its inability to boost bank lending, so the MPC must place greater emphasis on this problem. Cutting the interest on reserves held by banks should be reconsidered at the next meeting.

“With continued uncertainty over the economic recovery, it is important that viable businesses are confident they can access the required finance for investment and growth.”