CBI praises Bank of England&#39s gradualist approach

The Confederation of British Industry has praised the Bank of England&#39s decision to leave interest rates unchanged.

Ian McCafferty, chief economic adviser at the CBI, says: “The manufacturing recovery is fragile, inflation prospects are well under control and the previous two rate rises have not fully fed through.

“If the recovery continues as is hoped, the CBI recognises that rates will have to increase over the course of this year. But the Bank of England&#39s gradualist policy of well-explained and well-signalled rises remains the best way to maintain economic stability.

“The high level of personal debt reinforces the case for a steady approach and business remains concerned that sterling&#39s renewed strength could hold back the recovery.”