Interest Rates Freeze Understandable, says IoD

10 November 2005

Commenting on today’s decision by the Bank of England to leave interest rates on hold, Graeme Leach, Chief Economist at the Institute of Directors, said:

“The Bank is being understandably cautious about reducing interest rates until they are sure the second round effects of higher energy prices have not fed through to higher general inflation. We are relatively confident form surveys of IoD members that the second round threat is very weak and as a result we expect rates will fall further over the coming months.”