Signs of interest rate hold 'welcome'
Thursday, 21 April 2011
Suggestions that the Bank of England will hold off on raising interest rates is good news for business, according to one commentator whose views may interest people in accounting jobs.
Responding to the release yesterday (April 20th) of the minutes of the Monetary Policy Committee's (MPC's) monthly meeting, chief economist at the British Chambers of Commerce David Kern said the signs are "welcome".
Although he said it is likely that such a rise will have to be implemented later this year, the fact that wage pressures are not increasing and inflation has fallen recently mean that now is not the time.
"There are now strong arguments for the MPC to wait before considering a rise in interest rates," Mr Kearn stated.
In the current economic situation, a premature increase would put the nation's recovery at risk, the expert added.
Three members of the MPC favoured a rate rise, with Andrew Sentence calling for an increase to one per cent, while Spencer Dale and Martin Weale favoured a hike to 0.75 per cent.
