Birmingham Chamber of Commerce and Industry has called on the Bank of England to keep its nerve.
It wants the BoE to maintain interest rates on hold - the Monetary Policy Committee will announce the outcome of its latest monthly meeting today.
They currently stand at 4.5 per cent.
James Cooper, BCI policy adviser, said: "Businesses in Birmingham will be hoping the MPC does not damage this year's economic recovery by raising interest rates.
"The Bank's primary concern is the rate of inflation, which is currently running at 2.2 per cent and, as such, above the Government's two per cent target.
This is mainly due to the current high cost of energy, which has now filtered through into the price of goods and services. Although this is a cause for concern, we would urge the MPC to look at the bigger economic picture this month and hold its nerve."
He said the Chamber's quarterly economic survey, released on Monday, showed the pressure for businesses to increase the cost of their goods and services had eased slightly, while capacity pressures remained relatively subdued.
"Assuming wage inflation remains small and energy prices do not rise, we do not expect a significant short-term increase in inflation. As such, we do not believe an interest rate rise to control inflation is required.
"The QES for the second q uarter of 2006 shows Birmingham's service sector businesses are enjoying a particularly successful period while the manufacturing sector both nationally and locally has also seen a modest, if more fragile recovery.
"A third of Birmingham's manufacturers have still seen their profits fall over the past twelve months. Any interest rate rise now could expose the fragility of the recent positive economic developments and send the manufacturing sector into reverse."
Louise Bennett, chief executive of the Coventry and Warwickshire Chamber of Commerce, believes the depleted MPC - it is currently two members down after Richard Lambert's move to be CBI director general and the death of David Walton - will indeed leave interest rates unchanged.
She had been clinging to hopes of a cut, but now admits that possibility has receded in recent weeks and positive news from the manufacturing sector is likely to ensure no change.
She said: "There have been fewer calls for a cut in recent weeks and the shadow MPC voted firmly for a hold when it met this month.
"The news that manufacturers are showing increased optimism will only add to the thought that the status quo s hould be maintained although we regularly hear from members in that sector that a cut would be a big boost as trading conditions and competition are extremely tough."
Ms Bennett believes the choice of MPC replacements will prove a major pointer.
She noted: "It will be very interesting to see who the Treasury asks to take a seat on the MPC and the selection will have a key bearing on the future direction of rates."
The minutes of the MPC's June meeting and last week's testimony by some members to the Treasury Select Committee indicated no great hurry to move interest rates yet.
Friday's data showed the economy expanding faster than previously thought in the first quarter and all the years going back to 2001.
"With the MPC concerned about spare capacity, this could have a significant effect," said said Philip Shaw, chief economist at Investec.
John Butler, UK economist at HSBC Markets, added: "Since the May report, economic activity and inflation have developed as projected but equities are lower and trade-weighted sterling is higher.
"Given that background, there is little rush for the MPC to change interest rates."