Rates freeze expected, says PwC
The regional chairman of PricewaterhouseCoopers in the Midlands says the decision to keep interest rates on hold this month was expected. Mark Smith said he was unsurprised by the announcement made by the Bank of England’s Monetary Policy Committee yesterday.
He said: “Despite the 1.1 per cent surge in GDP growth in the second quarter of the year, governor King believes a sustained recovery remains uncertain and there is still some distance to travel before interest rates come back to typical levels.
"Policymakers are likely to keep interest rates at their current record low and continue to prioritise growth for some months yet.”
He continued: “There is also a possibility of more quantitative easing further down the line, which will further reassure Midlands businesses and consumers as they begin to come to terms with the likely impact of the government’s austerity measures.”
