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CBI REACTION TO BANK OF ENGLAND’S MPC DECISION

CBI

7 April 2011

The CBI today responded to the announcement from the Bank of England’s Monetary Policy Committee (MPC) that it will keep interest rates on hold.
Ian McCafferty, CBI Chief Economic Adviser, said:
“With inflation edging upwards, and additional cost pressures in the pipeline, questions over the underlying pace of growth leave the Bank of England in an unenviable position. Not surprisingly, they’ve elected to wait until things become a little clearer before setting their course towards any rises.
“There are conflicting messages about the low level of consumer confidence versus brighter prospects for certain sectors, which continue to cloud the issue. No doubt the MPC is waiting for further signs that the recovery is back on track before changing its stance.”