Scottish Chambers comment on interest rates and growth
Published 04 Jun 2015Commenting on the decision by the Bank of England to maintain interest rates at 0.5%, Liz Cameron, Director/Chief Executive of Scottish Chambers of Commerce, said:
“In its Quarterly Inflation Report last month, the Bank of England signalled that interest rates were unlikely to rise until well into 2016, so this month’s announcement comes as no surprise.
“Though factors such as the partial recovery in oil prices over the course of this year are likely to provide upward pressure on inflation as the year goes on, underlying low inflation and the fragility of the economic recovery mean that the Bank is right to keep interest rates at its historic low for the time being.
“Though low inflation and the rise in real wage levels are prolonging the ability of consumer demand to drive economic growth, signs of increased business investment and productivity growth are still in their infancy, meaning that there is some way to go still before we can say that the recovery we are experiencing is truly sustainable.”