Commenting on the Monetary Policy Committee (MPC) interest rate decision, David Kern, Chief Economist of the British Chambers of Commerce, said:
“The MPC made the correct decision in keeping interest rates and the level of quantitative easing on hold. It is also reassuring that only one member of the Committee, as in recent months, voted in favour of an increase in rates.
“Although real wages are rising, UK inflation is still 0% and is likely to remain below the 2% official target until well into 2017.
“The UK recovery, although on course, is still fragile - it remains too reliant on consumer spending and is facing headwinds. Many major economies are experiencing difficulties that will inevitably increase the challenges for our exporters. Against this unsettled background it is important to avoid any action that would put the recovery at risk. Businesses require a prolonged period of low and stable interest rates to help the recovery gather greater momentum.”