Saturday 4th February 2012 7.20pm
Post your Events CBI reacts to bank of England's MPC decision
The CBI responded to the announcement from the Bank of England's Monetary Policy Committee (MPC).
Sarah Green, Regional Director, CBI North East, said:
“It is unsurprising that the Bank has kept interest rates and its quantitative easing (QE) policy at the same levels. The situation is finely balanced.
“The economy is stabilising but still faces some serious headwinds, and recovery remains shallow-rooted. However, near-zero interest rates, the existing £200bn QE package and the sharp fall in Sterling are already extremely expansionary, and inflation has exceeded expectations consistently in recent months.”
Sarah Green, added:
“As the economy recovers, the bank will have to start to think about returning monetary conditions towards more normal levels. We would expect this to lead to a small rise in interest rates around the middle of this year.”
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