Raising interest rates should be off the table until 2011
04/08/10 | 11:47
Commenting ahead of the Monetary Policy Committee’s decision on Thursday, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:
“We expect the MPC to leave interest rates and the quantitative easing programme unchanged this month. Given the risks of an economic setback it is far too early to consider raising rates.
“The government’s tough deficit-reduction programme will inevitably hit the cashflow positions of many companies, and any early tightening in monetary policy would increase the pressures on businesses.
“British business will find it difficult to drive a lasting recovery without a prolonged period of low interest rates. Any serious consideration of raising interest rates should be off the table until the second quarter of 2011 at the earliest.”
Ends
Media Contact:
Sam Turvey
Tel: 020 7654 5813
Email: s.turvey@britishchambers.org.uk
Notes to Editors:
David Kern is available to comment further if required.
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