Pictured above: Christine Braddock, President of Birmingham Chamber of Commerce

Midland business leaders claim the economic climate is still too fragile for a rise in interest rates and are not surprised by the Bank of England's decision to keep the level at 0.5 per cent.  

Christine Braddock, President of Birmingham Chamber of Commerce, said: "Birmingham's annual GVA is predicted to reduce by £735m by 2015, around four per cent of economic output. This equates to an average decline in economic growth in the city of 0.9 per cent a year over the next four years. So interest rates still need to remain unchanged.

"However, the Monetary Policy Committee will be forced into a rise soon as inflation remains at over three per cent, a figure which has been retained for every month of 2010."

Mike Ashton, chief executive of Hereford and Worcester Chamber who has succeeded Simon Topman as chairman of the West Midlands Chambers of Commerce, said: "Manufacturing figures for October were better than expected but the volume of exports remains low.  

"Forthcoming spending cuts due to the rise in VAT in January will stifle economic growth. Companies should take advantage of the weak pound and increase expansion through overseas trade."