The business community in the West Midlands today backed the decision by the Monetary Policy Committee (MPC) to keep interest rates at a historic low of 0.5 per cent for the 27th month in a row. 

GDP grew by just 0.5 per cent in the first three months of the year indicating that the economy remains weak, said Birmingham Chamber of Commerce Group. 

President Christine Braddock added: "High inflation and increasing utility prices point to a rise at some point in 2011, possibly in November, but timing is crucial. As long as wage increases remain subdued, the MPC should hold its nerve for the time being. 

"Our members continue to inform us that they are benefitting from the low interest rate. However, at the same time, inflation is currently the prime concern." 

Mike Ashton, spokesman for the West Midlands Chambers of Commerce, said: "To raise interest rates now could damage the resurgence in exports, particularly for manufacturers.  

"The pound has devalued by around 25 per cent since the recession which means that British goods are cheaper in foreign markets so demand for luxury and high quality goods have continued to grow."