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Trade chief’s concerns for interest hike calls

By Burton Mail  |  Posted: January 12, 2014

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THE leader of Burton’s trade chamber has voiced concerns over calls from city analysts and the media to raise interest rates.

The director of the Burton and District Chamber of Commerce Chris Plant spoke out after the Bank of England’s monetary policy committee voted to hold interest rates at their record low of 0.5 per cent.

He said: “While the decision to hold interest rates was widely expected, it is concerning that there is increased clamour in the media and among some city analysts for an early increase in interest rates.

“We believe that the committee’s forward guidance strategy continues to be beneficial for UK businesses.

“Although economic growth is stronger than most people envisaged a few months ago, there is still no evidence that the time is ripe to tighten policy, given that earnings are below one per cent and inflation at just above two per cent.”

The Bank of England’s monetary policy committee did not release a statement following the announcement.

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