Today's decision to keep interest rates at 0.5% and to opt against a further extension of the quantitative easing programme will do nothing to help business growth, say business leaders in Birmingham and Solihull.

Paul Bassi, President of Birmingham and Solihull Chamber of Commerce and Industry (BCI) said: "Lack of cash flow is still hindering business development. But the economy needs interest rates at this level until such time as we conclusively see stability and growth.

"To boost bank lending, a viable option would have been to cut interest rates further. Money supply remains a concern and it is imperative that the right conditions for expansion are created in the first quarter of 2010.

"We eagerly await the final quarter GDP figures which we expect will show that we have exited recession.  However, any sort of recovery will be extremely fragile."