The Scottish Chambers of Commerce have welcomed the Bank of England’s decision to hold the base rate at 0.25%.
Liz Cameron, Chief Executive, Scottish Chambers of Commerce said:
“It was critical that the Bank of England demonstrated resolve on interest rates today. As illustrated by the government figures released earlier this week, increases in average weekly earnings are failing to outpace inflation, which continues to impact consumer spending and restrain wider economic growth.
“The circumstances currently being experienced by the UK are exceptional, and although the Committee is clear that monetary policy is not unlimited in its ability to insulate the economy from economic shocks, it is right, in our opinion, that the interest rate was held at 0.25% at this stage.
“With a rise in interest rates being considered at a more rapid pace than that currently expected by the markets, it is essential that the impact on wider business investment is fully considered before committing to any increase. Ultimately, business investment in skills and infrastructure is the only sustainable path to raise productivity, and ensure the rising profitability and wage increases needed to grow the economy.”