CBI comments on MPC announcement
The CBI commented on the announcement from the Bank of England's Monetary Policy Committee (MPC) that it will keep interest rates on hold. The CBI’s latest economic forecast can be found here:
Rain Newton-Smith, CBI Director for Economics, said:
“Despite last month’s difference in opinion among MPC members, it’s no surprise that there’s been no change to interest rates.
“We remain of the view that the first rate rise will come in the first quarter of next year. This reflects the fact that we expect inflation to remain below two per cent and that wage growth is likely to remain relatively subdued for the rest of the year.
"However, with business investment now picking up, we expect to see a rise in productivity which will in turn boost wages.”