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Press Releases

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INTEREST RATES ON HOLD – BUT FOR HOW LONG?

[ 10-03-2011 ]

Commenting on the decision by the Bank of England’s Monetary Policy Committee (MPC) to keep interest rates on hold at 0.5% for a further month, Liz Cameron, Chief Executive of Scottish Chambers of Commerce, said:

 
“We welcome the fact that interest rates have remained on hold at 0.5%, as we firmly believe that the real risks to our economy lie on the downside.  However with inflation still rising, albeit in large measure as a result of January’s VAT increase, the time will come when the Bank of England move to begin the process of returning interest rates to more normalised levels.
 
“For the time being we believe that there are still too many economic uncertainties to begin that process now, but we must recognise that the primary purpose of the MPC is to control inflation, not to micromanage the recovery.  The balancing act between growth and inflation is getting trickier as time passes, but the Bank has reached the correct decision this month.”

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