Business leaders in Birmingham and the West Midlands warned
today that it is only a matter up time before interest rates have
to rise.
But today's decision by the Bank of England Monetary Policy
Committee to keep rates at an historic low of 0.5 per cent was
welcomed by Birmingham Chamber of Commerce Group.
President Christine Braddock said: "The stability that today's
decision will continue to bring is most welcome but rates will have
to rise at some point this year to stave off increasing
inflation.
"Rates have been at an historic low for precisely two years but
fragility remains high as the British economy shrank in the past
three months of 2010. GDP was also revised downwards as the economy
contract by 0.6 per cent."
Mike Ashton, spokesman for the West Midlands Chambers of
Commerce, added: "We need to wait for a clearer picture to emerge
as underlying growth remains weak.
"Members continue to cite cash flow and regulation as the main
obstacles to growth and these issues need to be addressed in the
Budget later this month through growth-supporting policies."