Calls for economic stability

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NORTH East business leaders are calling on the Government to maintain current interest rates.

The North East Shadow Monetary Policy Committee (MPC) has delivered a majority decision not to change the interest rate and hold further quantitative easing (QE), ahead of the Bank of England’s announcement tomorrow.

A partnership between the North East Chamber of Commerce, the Institute of Chartered Accountants England and Wales, and the North East Shadow MPC looks at the region’s economy and gives experts from a variety of sectors the opportunity to argue their case.

Member Ajay Jagota said: “Base rates should remain unchanged.

“The housing sector is still yet to return to any normality and consumer confidence is still affecting businesses along with recent lack of growth reports. Further QE will no longer help with the circumstances and has failed to boost the economy.”

The Bank of England starts a policy meeting today amid market uncertainty over whether Britain has returned to growth in the third quarter in the wake of poor manufacturing data.

It was forecast to announce no changes to its main interest rate and stimulus programme at the conclusion of its two-day monthly meeting ending on Thursday, despite data this week that has weighed on Britain’s growth outlook.