Interest rates cut would counter threats of recession, but MPC expected to wait

Commenting ahead of the MPC’s interest rate decision on Thursday, David Kern, Economic Adviser to the British Chambers of Commerce, said:

“The MPC will almost certainly keep interest rates on hold on Thursday. But the economy urgently needs an interest rate cut to counter threats of recession. The MPC cannot ignore the dangerous effects of rising insolvencies, falling house prices, and worsening pressures on the banking system.

“With UK inflation expected to increase above 4.5 per cent in the next few months, the MPC may not be able to cut rates immediately. But as soon as inflation peaks later in the autumn, the MPC must start cutting interest rates without delay."

Ends

Media Contacts:

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

OR

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.