CBI responds to Bank of England Inflation Report

13 Feb 2014 12:21 PM

The CBI responded to the latest Bank of England Inflation report and new forward guidance on interest rates.

Katja Hall, CBI Chief Policy Director, said:

"The recovery is taking hold, and we’re seeing signs that business investment and trade are starting to make greater contributions to growth. But there is still considerable slack in the economy, so now is not the time to raise interest rates, as the Governor made clear.

"Forward guidance has clearly been effective in influencing companies’ expectations of when interest rates will rise and in cementing their confidence in the recovery.

"The Bank’s new guidance will give businesses further peace of mind that interest rates will stay low for some time, until investment and incomes are growing at sustainable rates. And the Bank has made clear that even when the economy is operating at more normal levels, rates will only increase gradually."