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East Midlands Chamber News

Chamber Welcomes Bank of England Pledge On Interest Rates

Bank of England Governor Mark CarneyNew Bank of England Governor Mark Carney today unveiled a “forward guidance” policy to support the UK’s economic recovery.

It includes a pledge to keep the UK’s base rate of interest at its current, historic low of 0.5 per cent at least until the headline unemployment rate falls below 7 per cent.

The Bank also upgraded its growth forecasts for the next two years, following a flurry of positive economic data in recent weeks.

Commenting, George Cowcher, Chief Executive of Derbyshire and Nottinghamshire Chamber of Commerce, the second largest Chamber in the UK, said: “Local companies will welcome the clarity provided on the future course of interest rates over the next couple of years. It will further underpin business confidence, which is currently on the rise on the back of a number of positive recent announcements about improvements in the local – and national – economy.

“Businesses need a stable environment, with reassurance that interest rates will remain at very low levels for the foreseeable future. It is this certainty which will enable firms to make longer-term decisions about their investments and plan for future growth.

“However, we need to keep in mind that the economy is not out of the woods just yet. Although the recent signs are encouraging, economic output is still around three per cent below its pre-recession peak, meaning the Government cannot take its foot of the accelerator. It is vital it does everything it can to maintain the momentum of growth.”

Governor Carney is set to give his first public speech in his new role at a business event in Nottingham later this month, facilitated by DNCC in partnership with CBI East Midlands and the Institute of Directors.

Further information will be available at the Lunch with the new Governor of the Bank of England event.