UK - BCC says "extraordinary" that Bank of England is considering raising interest rates

Author: Eamonn Sheridan | Category: Central Banks

From the British Chambers of Commerce Quarterly Economic Survey of businesses

  • UK Q3 service sector domestic sales unchanged vs Q2, export sales up slightly
  • UK Q3 manufacturing domestic and export sales increase slightly vs Q2
  • UK business investment intentions subdued in Q3, no sign of pay pressure increasing
  • gauges of confidence in turnover and profitability stood at their highest levels since 2015, the BCC survey showed little desire among manufacturers to increase investment
Report via Reuters:
  • Britain's economy shows little sign of breaking out of its lethargy and it is "extraordinary" that the Bank of England is considering raising interest rates, the British Chambers of Commerce said on Friday
  • Overall the BCC described the survey as "uninspiring", with political uncertainty, currency fluctuations and Brexit clearly affecting British businesses
  • BCC said price pressures in companies, while high historically, looked likely to peak soon. "Against this backdrop, it seems extraordinary that the Bank of England are considering raising interest rates," said Suren Thiru, BCC head of economics.
  • "We'd caution against an earlier than required tightening in monetary policy, which could hit both business and consumer confidence and weaken overall UK growth," Thiru said.