“Today’s decision by the Bank of England’s Monetory Policy Committee to keep interest rates and quantitative easing on hold was correct and unsurprising” said Caroline Williams CEO Norfolk Chamber “The OBR’s growth forecast for the next two years, announced yesterday, is on the low side. While we think that they have underestimated the growth potential for the economy, we recognise that the UK is still facing many headwinds. The fast moving situation in Greece is creating uncertainty for businesses, particularly those exporting across the EU.
“Although inflation will slowly edge up over the next 18 months, it will remain well below the Bank of England’s 2% target until well into 2016. In addition, following the Chancellor’s summer budget, businesses will need a period of stability through which to plan and invest. Against this background the MPC can afford to keep official interest rates at their current low level for the foreseeable future. Businesses would also benefit from a more open communication from the MPC over its plans for interest rates over the mid to long term.”
