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| FSB calls on Bank to maintain base rate |
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| Latest Recruitment News - Office Recruitment News |
| Written by DirectNews Feed |
| Thursday, 10 February 2011 00:00 |
 Small and medium-sized enterprises (SMEs) would benefit if the Bank of England opted to maintain the UK's base interest rate at 0.5 per cent later today (February 10th 2011).That is according to John Walker, national chairman of the Federation of Small Businesses (FSB), who has said that companies offering employment opportunities such as finance jobs in London may be negatively affected should the Monetary Policy Committee (MPC) decide to increase the rate. Mr Walker explained that factors such as the VAT rise from 17.5 per cent to 20 per cent and the expected effects of the government's austerity measures are making life tough for SMEs at the moment, meaning that an interest rate hike would not be good for them. He noted that the MPC should "look to promote growth and leave tackling inflation as a medium-term priority, at least until the impact of the increase in VAT and fuel duty has levelled out". This comes after the British Retail Consortium stated that the coalition may have made a mistake in abolishing the Local Better Regulation Office. Posted by James Strang 
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