Birmingham business leaders have welcomed the Bank of England’s decision to hold interest rates at their record low of 0.5 per cent.
The Bank resisted pumping more cash into the struggling UK economy despite mixed signs on the health of the recovery and rising tensions in the eurozone.
The most recent £50 billion injection into the Bank’s quantitative easing (QE) programme took place in February but members of the Monetary Policy Committee (MPC) have vetoed increasing the stock of asset purchases from £325 billion.
But economists said the nine-strong committee would have “seriously considered” additional QE.
Michael Ward, president of Birmingham Chamber of Commerce said the West Midlands was one of the only regions not in recession in quarter one.
He said: “Manufacturers are leading that growth with fantastic products that the region has to sell to the world. Low interest rates enable manufacturers to be more competitive.
“Companies are also finding opportunities to capitalise on the poor quality of Chinese goods and can produce smaller quantities, which helps customers avoid storage problems.
“However while our economic prospects are increasing, we must not get complacent.”
Pressure on the Bank to implement more stimulus measures has been mounting in recent weeks after official figures showed the UK’s double-dip recession was deeper than previously thought, with a 0.3 per cent fall in the first quarter of 2012.
IMF managing director Christine Lagarde also called on the Bank to lower interest rates further to help the UK weather the eurozone debt crisis.
And inflation continued to fall in April, providing more leeway for a fresh money injection.
Mr Ward added: “Ongoing problems in Europe will persist for some considerable time and demands for more quantitative easing have started to rise due to the worsening crisis in the Eurozone. But there are plenty of opportunities elsewhere in the world.
“High-growth markets include the BRICs, whose dynamic economies will provide a wealth of prospects for UK firms in the coming decades.
“In addition to the BRICS, there are other fast-growing markets with great potential, such as Colombia, Indonesia, Vietnam, Turkey and South Africa.”
The Banks decision comes as pressure mounts on political leaders to draw up a firm action plan to tackle the mounting eurozone crisis, with Spain appearing to move closer to taking an EU bailout and a crucial election in Greece imminent.