Commenting on today’s Monetary Policy Committee (MPC) interest rate decision, David Kern, Chief Economist at the British Chambers of Commerce (BCC) said:“We support the prudent decision to maintain QE at £375bn, and hold interest rates at 0.5%. Following the return to positive GDP growth in Q1, pressures for an increase in QE have eased. We still firmly believe that adding to QE would only provide marginal benefits for the economy, while increasing the risks of higher inflation and bubbles in the future.

“Following the changes in the MPC’s remit announced in the Budget, it is worrying that the demand for more QE could be part of a wider policy shift where higher inflation and a weaker pound are tolerable. Instead, incoming Governor Mark Carney should make better use of the existing QE programme, and use measures other than QE alone to support a revival of business lending.”