Birmingham businesses call for MPC to hold rates steady

Members of Birmingham's professional and financial services sector have welcomed the monetary policy committee's (MPC) decision to hold interest rates steady at 4.75%. Ronnie Bowker, managing partner at accountants Ernst & Young and board member of lobby group Birmingham Forward, said: "Three months into the New Year the economy is still producing mixed messages, with convincing arguments for both increasing and decreasing the current rate. "While consumer debt remains high and inflation could be considered a threat, retail spending is fairly steady and house prices seem to be levelling out - all of which suggest that rate rises now would be premature. "From a business perspective, stability is crucial and the MPC's decision to keep interest rates on an even keel will benefit all sectors of the local economy. "With high commodity prices still making their presence felt, small rate cuts may even be necessary to support business growth over the coming months. "The MPC's decision to maintain rates for now while continuing to monitor the situation should ensure continued business confidence while leaving room to manoeuvre should external pressures demand." For further information, please contact: Elizabeth Green or Catherine Connan on 0121 693 1850 or email elizabethgreen@armadillo-pr.com or catherineconnan@armadillo-pr.com

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