Chambers of commerce in the West Midlands have welcomed the decision by the Bank of England to keep interest rates on hold at 0.5 per cent.
The nine-strong Monetary Policy Committee (MPC) have kept interest rates at the same level, a record low, since March 2009.
Will Rogers, policy adviser at the Black Country Chamber of Commerce, said: “The decision to leave interest rates unchanged at 0.5 per cent was the correct one, with uncertainty remaining prevalent.
“Although last month’s GDP figures were encouraging, risks of a double dip remain as shaky business confidence, looming public sector cuts and falling consumer confidence all continue to harm recovery.”
Despite the encouraging news, Mr Rogers warned that interest rates would have to rise in the future, in order to contain inflation.
He added that the uncertainty over this was likely to damage the already fragile confidence of Britain’s business community.
The Coventry and Warwickshire Chamber of Commerce chief executive Louise Bennett agreed the Bank’s Monetary Policy Committee was right to leave rates at their record low of 0.5 per cent.
She said: “Speak to most companies about the economic picture and they are cautiously optimistic but confidence is fragile.
“We need a sustained period of low rates to help build confidence – particularly with so many public sector cuts taking place.
“Therefore, if we want the economy to grow through private sector investment, low interest rates – supported by greater bank lending – is the only way that can be achieved.”
