| The Bank of England’s Monetary Policy Committee (MPC) has kept interest rates steady at 5.25%, with a mixed reaction from the business community.
With the threat of a slowing economy and the danger of inflation, the MPC have decided not to repeat February’s cut in interest rates, despite calls from some quarters to reduce it further.
"This decision is not surprising, but we believe it is mistaken given the worsening international and domestic situation. The MPC has missed an important opportunity to underpin business and consumer confidence, and limit the potential damage to the economy," stated David Kern, Economic Adviser to the British Chambers of Commerce (BCC).
Other organisations hailed the choice to hold rates steady as a balance between tackling the threats of a slowing economy and inflation.
The decision was "no surprise and wise," according to Graeme Leach, chief economist for the Institute of Directors (IoD).
"The last thing the economy needs is for an overly aggressive easing in policy now, which has to be reversed later in the year."
It is predicted that the MPC will reduce rates further over the coming months, with a cut to 5% occurring in either April or May.
|
