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SCC CALLS ON BANK OF ENGLAND TO SHOW RESTRAINT
Commenting on the news that CPI inflation has today risen 3.3%, Liz Cameron, Chief Executive of Scottish Chambers of Commerce, said:
“This latest rise in inflation should not provoke the Bank of England’s Monetary Policy Committee to consider raising interest rates. It is clear from the data behind the inflation figures that the most significant cost pressures are coming from rising food and energy prices, and it is difficult to see how an increase in base rates could affect demand for these essentials to such an extent that downward pressure on inflation could be achieved.
“For Scottish businesses already facing significant cost increases through energy bills and raw materials, a rise in interest rates would do nothing to alleviate these pressures, and indeed may make it more likely that increased costs would be passed on to customers and consumers.
“The Bank of England have a tough job at present, but they must stand firm against adding even more cost pressures to business at this time.”