Little room for bank to manouevre on interest rates - CBI

Submitted by on Fri, 6.06.08

Commenting on the decision by the Bank of England’s Monetary Policy Committee (MPC) to keep interest rates on hold at 5.0% today (Thursday), Sarah Green, Regional Director, CBI North East said:

“The Bank had little option this month other than to leave interest rates on hold - oil and commodity prices are still of great concern and businesses are having to raise prices as profit margins get squeezed further. We have yet to reach the peak in inflationary pressure, even though we still expect the rate of inflation to fall back markedly through 2009.”