Commenting on today’s MPC decision, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:"The financial markets have anticipated today’s MPC decision to keep the official interest rate unchanged at 0.50 per cent. With the rate now close to zero, further cuts are unlikely to produce benefits.

“But British business is concerned that, in the face of a severe recession, quantitative easing has not been sufficiently effective so far. Yields on both gilts and corporate bonds will have to fall much further, before the policy produces a meaningful unblocking of the credit markets. 

“Quantitative easing must be implemented in a more transparent way. The Bank of England must spell out what rate of expansion in the money supply they are planning to achieve. To alleviate the downturn, it is important to increase monetary growth amongst industrial and commercial companies and individuals.”