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SCC comment on Interest Rates

Thursday 4th February 2010

Commenting on the decision of the Bank of England’s Monetary Policy Committee to keep interest rates on hold at 0.5% and to freeze its policy of Quantitative Easing, Liz Cameron, Chief Executive of Scottish Chambers of Commerce, said:

“Given last month’s higher than expected inflation rate, and the return of the UK economy to growth, albeit weak at present, the Bank’s decision to keep QE on hold is understandable.  However they are right to leave interest rates unchanged, as the real danger to our economy remains on the down side rather than through inflation.  In these circumstances, and given the Bank of England’s medium term outlook for inflation, we would hope that base rates will remain low for some time to come.”

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