Bank Must Signal Long Term Low Interest Rates

Thursday 10th November 2011

Commenting on the news that the Bank of England’s Monetary Policy Committee has kept interest rates on hold at 0.5% for a further month and maintained Quantitative Easing at £275 billion, Liz Cameron, Chief Executive of Scottish Chambers of Commerce, said:

“It is no surprise that the Bank of England have decided to hold a steady course this month.  With a swathe of new economic data due to be published next week, including the Bank’s quarterly inflation report and the latest inflation and unemployment figures, we may begin to understand whether inflation has now past its peak and whether Scotland continues to buck the UK trend of high unemployment.

“Even as inflation begins its expected downward trend next year, it is important that the Bank signals its intention to keep interest rates low for much of 2012, as the US Federal Reserve has already done.”

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