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

“While the large majority of committee members still believe in the existing policy of keeping interest rates low, it is disappointing that two members voted for an immediate increase at the last MPC meeting. With inflation well below target and wage growth stagnating, any increase in interest rates at the moment would be premature. The economic recovery is still not secure and growth amongst UK businesses must be fostered in a low interest rate environment. The risks from raising rates too early are much greater than the risks of waiting just a little longer.”