The best business advice, opinion, news and expertise in Greater Manchester and further afield.

Thursday, 5 August 2010

Interest Rates Held at 0.5%

Commenting on the MPC’s decision to hold interest rates at 0.5%, Dr Brian Sloan, Head of Business and Economic Policy at Greater Manchester Chamber of Commerce, said: “Although inflation remains a problem we believe the Bank was right to maintain rates at 0.5% today, though we cannot ignore the growing case for interest rate rises sooner rather than later.

“However, the private sector recovery remains in doubt. In addition to this, though public sector cuts are underway, the numbers are not yet showing the impact this is going to have on growth and demand.

“A concern for us is that not enough has been done to promote an export led recovery whilst the value of Sterling has been relatively low. This is now being diminished and weak domestic demand is going to bear down on growth for sometime to come, making the Bank’s job even more complicated in the months ahead.”

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