15 September 2016. In response to the Bank of England’s decision to hold interest rates at 0.25%, James Sproule, Chief Economist at the Institute of Directors said:
“The Bank of England made the right decision today, but it remains in a difficult position. Economic data so far are better than expected, yet there are still justifiable concerns about firms and consumers holding off on large investments. If economic conditions continue to hold up, the Monetary Policy Committee should refrain from further loosening monetary policy.
“While the focus on the timing and shape of Brexit remains a natural and justifiable worry, investors should not allow this to obscure concerns about the ability of the Bank to effectively intervene in a future crisis. Longer-term, interest rates will have to be brought back to a more normal level.”