Commenting on today’s Monetary Policy Committee (MPC) decision, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:
"The MPC’s decision to maintain a "wait and see" stance - with no changes to either interest rates or QE – was widely expected. However, we are disappointed that specific measures aimed at stimulating bank lending to credit-worthy companies have not been adopted.
“Until the Government presents a more credible medium-term plan for curbing Britain’s budget deficit, the MPC has little room for manouvre. It faces the difficult task of balancing potentially conflicting priorities - countering threats of a double-dip recession, while avoiding actions that might endanger the UK’s international credit status.
“Both the Government and the MPC must realise that the persistent weakness in bank lending, particularly to small and medium sized firms, remains a key factor delaying Britain’s exit from recession. Decisive action is needed in order to unblock the impediments facing viable businesses that require improved access to bank finance.”
For further information please contact the BCC press office on 020 7654 5813 or 07825 746812.
