CBI: MPC still in 'wait and see' mode

12 May 2017 02:05 PM

Interest rates to stay at 0.25% while the Bank of England reduced its growth forecast for 2017.

Rain Newton-Smith, CBI Chief Economist, said:

“The Monetary Policy Committee remained in wait-and-see mode this month, following slower growth in the first quarter, tepid wage growth and signs that household spending is coming under pressure.

“There are mixed messages on economic momentum, with survey indicators pointing to stronger growth than official data. Any changes to monetary policy are unlikely in the near future, particularly amid ongoing uncertainty over the impact and outcomes of EU negotiations.  

“The business community wants to see how each political party plans to best support stability and offer a long-term vision for the UK economy – making it the most inclusive, innovative and open in the world.

“That means the next Government must truly get behind a new Industrial Strategy to drive growth and job creation across the UK and also deliver a new migration system that ensures firms have access to the skills and labour they need post-Brexit.”