Pictured: Mike Ashton

West Midland business leaders welcomed the Monetary Policy Committee's decision to extend its quantitative easing programme by £50 billion to £325 billion yesterday.  

Keeping the bank rate at 0.5 per cent is another positive step to encourage business growth and investment said Michael Ward, president of Birmingham Chamber of Commerce.

He said: "There needs to be an added boost to the economy to undo the stagnation and decline we've seen in recent months. Demand is faltering and interest rates cannot be lowered much more, so putting more money into the economy and increasing quantitative easing is the right step to growth. This will allow banks to lend to SMEs who previously might have been rejected, due to higher capitalisation requirements."

Mike Ashton, spokesman for the West Midlands Chambers of Commerce said: "The low bank rate which has remained at 0.5 per cent since 2009 will encourage businesses to borrow money leading to investment, growth and more jobs. Resulting low mortgage repayments encourages consumer spending which is good news for retail businesses.  Low interest rates also encourage businesses to export as it keeps the value of the pound down."