Reacting to the Bank of England's decision to increase interest rates by a quarter point, CBI Chief Economic Adviser, Ian McCafferty, said:
"Business recognises that interest rates will need to rise to a more neutral level over the next 12 months, so this rise is no surprise.
"Companies will be pleased that the Bank has continued its well-signalled, gradual approach. That is the best way for the Bank to maintain economic stability, and to ensure that rates end the cycle no higher than they need to be.
"But, with inflation well under control, firms would have serious concerns if this move were to herald the start of a series of more rapid rises. The two previous increases have not yet had time to take full effect and business is still concerned that sterling's renewed strength could hold back the recovery."