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.”
