Pictured: Michael Ward
West Midland business leaders are urging the Bank of England to
keep interest rates on hold, as increasing the rate from its
historic low of 0.5 per cent will do little to stimulate the
economy.
Michael Ward, president of Birmingham Chamber of Commerce and
Industry said raising interest rates will not counter inflation. He
said: "We are also urging the Bank of England to increase the
quantitative easing programme by another £50 billion to
£325 billion. However, to maximise this, we must also have in
place a significant credit easing programme.
"Inflation has largely been driven by global shocks, such as the
Eurozone crisis and the impact of the Japanese tsunami, which will
hopefully dissipate over the coming months.
"Birmingham Chamber of Commerce Group's latest Quarterly
Economic Survey indicates that business is seeing a slowdown in
the regional economy. It is imperative that we take every
measure to stimulate business investment and growth."