Change for MPC but Birmingham's businesses still wait for theirs

Following the departure of two members of the Monetary Policy Committee (MPC), business lobby group Birmingham Forward hoped the effects on the MPC would be positive for the business community and called for a cut in interest rates sooner rather than later. Simon Murphy, board member of Birmingham Forward, said: "There have been many changes within the committee in the last month and the new members will undoubtedly begin to make their influence felt over the next few months. "We are disappointed that the rates have been held once again and feel we are long overdue for a cut that will kick start the economy. The MPC needs to take a fresh look at the situation. Keeping interest rates at 4.5 % will not address our concerns. "We need to regenerate a depressed manufacturing and retail sector because the professional and financial services sector's clients have directly been affected by it and this in turn has influenced our sector. "Stamp and fuel duty have increased after Budget day and therefore the costs incurred each day will also put pressure on businesses. At the same time, we must ensure that consumer debt is controlled so both businesses and consumers do not suffer. "A small cut may save businesses from going into recession and, if managed properly, should still ease negative pressures in the coming months."

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