Interest freeze is chance for export-shy to shine, says Chamber
The government must provide bigger incentives to encourage companies to grow in the wake of stagnant interest rates, according to the Birmingham Chamber of Commerce Group.
Christine Braddock, president of the chamber, made the call after the Bank of England’s Monetary Policy Committee froze interest rates today for the 29th month in succession.
She said: "The announcement to keep interest rates unchanged should encourage companies to export which will promote economic development. Just one market can no longer be relied upon to generate 100 per cent of sales. Entering more markets means more customers can grow the business and spread risk."
Mark Smith, regional chairman at PwC in the Midlands, said that the country was "unlikely" to see a change in interest rates in the coming months.
He said: "The MPC’s decision to maintain the status quo for yet another month comes as no surprise, but nevertheless, is to be welcomed by businesses in the Midlands.
"However, with the reduced availability of credit, the true cost of borrowing remains high and this continues to affect businesses, particularly those investing in export markets. Low levels of consumer confidence and the cuts in public spending are adding to the economic pressures."
