Responding to today’s decision by the Bank of England, EEF, the manufacturers’ organisation, believes that with inflation expectations having eased in the medium term and, with growth on track and more balanced, today’s move is premature.
In addition, at a time of increased political and economic uncertainty overseas, this was the wrong time to raise interest rates.
EEF Director General, Martin Temple, said:
"The Bank has jumped the gun with today’s decision. Despite increases in energy and other costs, we have yet to see second round effects on the radar which would lead to a sustained increase in inflation. Business will not look kindly on this decision if this rise has to be quickly reversed later in the year."