Coventry & Warks chamber urges MPC to hold rates

BANK of England policymakers need to retain their stance on interest rates and keep them at their historic low if they are to help businesses sustain growth in the uncertain economy, Coventry and Warwickshire Chamber of Commerce has said.

The chamber, which moves to its new home at the Coventry University Innovation Village on Monday, said businesses needed certainty that conditions would not change.

Louise Bennett, the chamber’s chief executive, said: “The Bank of England has kept a steady hand when it comes to interest rates in the face of inflation that is higher than its target.

“There is a clear understanding that the factors affecting inflation are external and will not be pegged back by putting rates up.”

She said any rise in interest rates would have a detrimental effect on the fragile recovery and only when there was real evidence of the economy improving should the Monetary Policy Committee consider making a change.