NECC comments on interest rates hold
Commenting on the Bank of England’s decision to keep interest rates at 0.5%, Martyn Pellew, President of the North East Chamber of Commerce, said: “While there have been calls from outside the Monetary Policy Committee to raise interest rates, this would be a potentially risky course of action.
“If interest rates are increased too soon, the danger of the UK entering a double-dip recession will also increase. UK businesses are facing pressure from the Government’s necessary austerity measures, and the remaining months of 2010 must be negotiated carefully to avoid a return to recession.
“With this in mind, the steady approach we have seen to date by the Bank of England will aid businesses more effectively in the long run.”
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