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STRONG GDP FIGURES WILL REINFORCE PRESSURE FOR HIGHER INTEREST RATES

20/07/07 | 11:15

"Today's preliminary GDP figures are showing a strong quarterly increase of 0.8%, highlighting the robustness of the UK economy. The new estimate confirms the results of the BCC's recent QES figures. Manufacturing growth accelerated in the quarter and Services was slightly down.

"Unfortunately the strong figures will heighten pressure for higher interest rates, at a time when the case for further tightening policy are by no means conclusive. There are already signs that the housing market is softening slightly, and yesterday's retail sales figures were weaker then expected. We urge the MPC to maintain a cautious stance, and not rush to increase interest rates further before the results of previous increases become clear".

ENDS


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NOTES TO EDITORS:

The British Chambers of Commerce (BCC) is the National Voice of Local Business.
The BCC sits at the heart of a powerful nationwide network of Accredited Chambers of Commerce serving business across the UK, which employ over five million people.