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

Thursday, 10 February 2011

Interest Rates Held

Commenting on today's decision to hold interest rates, Dr Brian Sloan, Head of Business and Economic Policy at Greater Manchester Chamber of Commerce, said: "Businesses and consumers will be relieved that yet again the Bank of England has held rates at the record low of 0.5%, however it is likely to have been the surprise news of the 0.5% contraction of the economy during the final quarter of 2010 that has stopped more members of the committee joining Andrew Sentance and Martin Weale’s call for an interest rate rise.

"We firmly believe that whilst a rate rise now will do more harm than good, businesses and consumers should prepare for a rate rise in the next three months. On top of tax increases, which are only temporary inflationary influences, inflation is being imported due to strong growth in the emerging economies. It is this imported inflation that is leaving the Bank with little option but push rates higher sooner than it might have otherwise preferred."

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