| Business groups have expressed their disappointment over the Bank of England’s decision to keep interest rates at 5.5% after lobbying for a cut to be made.
The Monetary Policy Committee (MPC) last cut interest rates in December, bringing them down from 5.75% to 5.5%. The business community had hoped that a further cut would be made in January.
Christmas was disappointing for many retailers, with consumer spending failing to reach the expected level. Some big name retailers like Marks and Spencer’s and Next have reported a slump in sales.
"The decision is disappointing but not surprising. The MPC missed an important opportunity to underpin confidence and limit the damage to the economy," stated David Kern, Economic Adviser for the British Chambers of Commerce.
There is now expectation that the MPC will cut rates by 0.25% in February to stimulate the economy.
|
