The Bank of England yesterday voted to hike borrowing costs for the first time since July 2007!
Commenting on the interest rate decision by the Bank of England’s Monetary Policy Committee, Denise Rossiter – Chief Executive, Essex Chambers of Commerce, said:
“Our preferred outcome was for a further period of monetary stability, with interest rates steady over the near term. Today’s quarter point rise may have little effect on most companies, but many will view this as the first step in a longer policy movement – not as a simple reversal of last year’s cut.”
She added “These are challenging times for monetary policymakers. The MPC had the unenviable task of weighing future risks to inflation, from a tight – and tightening – labour market, pass-through from a weaker pound and rising commodity prices. Against this, they needed to consider the future risks to under-shooting the inflation target from weak growth, fragile business confidence, and the effects of uncertainty.”
The Bank has done everything to keep the failing economy moving.
But this rise shows the problem lies with the government’s continued fiscal austerity.
