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Chambers Of Commerce Say Interest Rate Rise Would Derail Recovery

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British businesses are calling on the Bank of England not to rush into an interest rate rise, warning that the recovery is not yet secure as a closely watched report on Tuesday shows a slowdown in exports.

The British Chambers of Commerce (BCC) says its latest quarterly poll of thousands of companies shows their performance slipped on key measures such as overseas sales and investment during the last three months when compared with a strong start to 2014.

The business group said its findings still pointed to a solid pace of growth for the UK, but were a reminder that the recovery was not entrenched and rebalancing the economy still had a way to run.

It warned against an early move to raise borrowing costs after recent comments from Bank of England policymakers have raised expectations that a hike could come before the end of the year.

"These results reinforce the case against the Bank of England making any hasty decisions on raising interest rates in the very short-term," said BCC director general John Longworth.

"By driving up the cost of credit for fast-growing firms, many of whom do not sit on the same healthy cash piles as their more established counterparts, early rate rises may mean more limited growth ambitions among the very firms we are counting on to drive the recovery.

O dear the recovery goes from strength to strength...

Everyone is a junkie zombie.

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UK economy growing solidly

Britain's economy kept growing at a robust rate in the second quarter, but exports and business investment weakened, clouding the prospects for a balanced recovery, a survey shows. Full Article

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Must be the week the MPC are due to meet again...

I see that the Halifax update is rather late this month too - if it's out this late it will be a fall and they'll release it on Thurs morning to coincide with the MPC meeting.

Cynical, moi?

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Chambers of Commerce, CBI : more immigration (cheaper labour) lower interest rates

Unions: pay public sector workers more

Building Society Economists: house prices are going up

These are bodies representing vested interests that are paid to promote particular lines. None of this should not be published as news.

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