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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, David Kern, Economic Adviser, British Chambers of Commerce, said:

“The MPC will almost certainly keep interest rates on hold on today, at five per cent. But the MPC cannot ignore the mounting threats of falling UK house prices and worsening pressures on the global banking system. The economy urgently needs an interest rate cut to counter threats of recession.”

“With UK inflation expected to increase in the near term, the MPC may not be able to cut rates today. However, the MPC must start cutting rates in October or November, as soon as 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: BCC REACTION TO INTEREST RATE DECISION
[08/02/07 12:00]

Commenting on the Bank of England’s interest rate decision; Interest rates cut would counter threats of recession, but MPC expected to wait
[07/08/08 00:01]

Commenting ahead of the MPC’s interest rate decision on Thursday

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