Inflation Report emphasises need for low interest rates
11/08/10 | 11:55
Commenting on the Bank of England’s latest Inflation Report published today, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:
“The Inflation Report and comments from the Bank’s Governor confirm the difficult circumstances facing the UK economy in the year ahead, and reinforce the need for maintaining low interest rates. British business is still facing many challenges and any premature rise in interest rates could trigger a damaging economic setback.
“The report’s growth projections, although slightly lower than in May, are still too optimistic. They do not yet acknowledge the full impact of the deficit-reduction measures taken in the emergency Budget. The unpleasant combination of weaker growth and higher inflation can only be dealt with by making it possible for the wealth-creating private sector to rebalance the economy and drive a lasting recovery.”
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Media Contact:
Sam Turvey
Tel: 020 7654 5813
Email: s.turvey@britishchambers.org.uk
Notes to Editors:
The Inflation Report, which regularly references the BCC’s Quarterly Economic Survey of over 5,000 businesses, can be viewed in full via this link - http://www.bankofengland.co.uk/publications/inflationreport/ir10aug.pdf
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