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SCC COMMENT ON INTEREST RATES


Commenting on today's decision by the Bank of England's Monetary Policy Committee to keep interest rates on hold at 5%, Liz Cameron, Chief Executive of Scottish Chambers of Commerce, said:

"With inflation running at almost double the Government's target of 2%, it is perhaps as much as we could have hoped for that the Bank of England have kept rates on hold this month.

"We are detecting a deepening lack of optimism among Scottish businesses and it is important that everything possible is being done to bolster confidence and reduce business costs.  Any rise in interest rates at this time could have hit both businesses and consumers hard, and led to greater pressure on wage settlements without necessarily having had any impact on the factors which are fuelling inflation, including energy prices."


Ends.

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