Commenting on today’s Monetary Policy Committee (MPC) interest rate decision, David Kern, Chief Economist at the British Chambers of Commerce (BCC) said:

“Keeping interest rates and quantitative easing on hold was unsurprising and the right decision by the MPC. An early interest rate increase would have been unjustified and potentially damaging at a time when wage pressures are weak and inflation is below target. We are pleased that our view seems to be widely accepted in the financial market, and businesses will be relieved that an early rate rise appears to be off the agenda.

“These arguments are reinforced by global economic challenges, with the eurozone under particular pressure and our latest QES showing the pace of UK growth is slowing. Many commentators believe that GDP growth will further decelerate in Q4.

“Given this background, it is clear that keeping the economic recovery on track must remain a priority and risks of a steady slowdown must be countered. As well as providing clarity that interest rates will remain low well into 2015, the MPC must make renewed efforts to boost bank lending to growing businesses.”