Commenting on the interest rate decision announced today by the Bank of England’s Monetary Policy Committee, David Kern, Chief Economist at the British Chambers of Commerce (BCC) said:
“It was widely expected that the MPC would leave its policy on hold. At this stage of the UK recovery it is important that the MPC supports the stability that businesses need. Existing calls from some quarters for an early rate rise are unwelcome and risk unsettling business plans for higher investment. The Bank of England must strive to maintain an environment that supports investment, with clarity on the future path of interest rates and action to keep inflation low.
“We are pleased that the Bank of England will now contribute to Britain’s export finance effort. The Bank could take this further and step up its support to business lending in general, particularly for growing companies and for SMEs, as many firms still encounter problems. Access to finance remains a key issue in achieving a sustainable recovery, and the Bank could play a key role in rectifying this gap.”