Recession is now a more serious threat than higher inflation

Commenting on today’s MPC decision, David Kern, Economic Adviser to the British Chambers of Commerce, said:

"The MPC's decision today was expected almost unanimously and British business is not surprised. We understand the MPC’s desire to maintain credibility in the face of an expected upturn in inflation.

“But the MPC cannot ignore the fact that recession threats have worsened. While the near-term rise in inflation is unavoidable, it is also temporary as weaker growth would clearly push down inflation sharply next year. Limiting the threat of a major recession must be the priority.

“As soon as inflation peaks later in the year, the MPC should start cutting interest rates without delay."

Ends

Media Contacts:

Fiona Cunningham
Tel: 020 7654 5812
Email: f.cunningham@britishchambers.org.uk

OR

Sam Turvey
Tel: 020 7654 5813
Email: s.turvey@britishchambers.org.uk

Notes to Editors:

The British Chambers of Commerce (BCC) is the National Voice of Local Business.
The BCC sits at the heart of a powerful nationwide network of Accredited Chambers of Commerce serving business across the UK, which employ over five million people.