Policy Zone

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Major recession can be prevented, but MPC must not delay too long

04/09/08 | 12:00

Commenting on today’s Monetary Policy Committee (MPC) decision, David Kern, Economic Adviser, British Chambers of Commerce, said:

"The MPC's widely-anticipated decision today, to keep rates on hold at five per cent, is understandable. In the face of rising inflation, the MPC must maintain credibility. But, the MPC cannot ignore the fact that the UK economy is very likely in technical recession already, and there are distinct risks that the situation would worsen. A major recession can still be prevented if prompt action is taken. The MPC should start cutting interest rates promptly in the next few months, as soon as UK inflation peaks.”

Ends

Media Contacts:

Fiona Cunningham
Tel: 020 7654 5812
Email: f.cunningham@britishchambers.org.uk

Sam Turvey
Tel: 020 7654 5813
Email: s.turvey@britishchambers.org.uk

Notes to Editors:

The British Chambers of Commerce (BCC) is the National Voice of Local Business.
The BCC sits at the heart of a powerful nationwide network of Accredited Chambers of Commerce serving business across the UK, which employ over five million people.

Other related links: MPC must start cutting rates in October or November
[04/09/08 00:01]

Commenting ahead of the Monetary Policy Committee’s (MPC) interest rate decision today; To avoid major downturn, MPC must cut rates in the next 2-3 months
[31/08/08 00:01]

Commenting on the choices facing the Monetary Policy Committee (MPC) at its September 2008 meeting next Thursday

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