Business leaders' talks over interest rate rise

BUSINESS leaders have met with a member of the Bank of England's influential monetary policy committee (MPC) who voted for a rise in interest rates last month.

Around a dozen businesses from Coventry and Warwickshire were given an audience with Michael Sanders, who is in the inner sanctum of the British economy.

The firms heard Mr Saunders, an external member of the MPC, give a lowdown on the economy at a behind-closed-doors session at Coombe Abbey Hotel.

The former economist at Citigroup was one of three members of the MPC to vote for a rise in interest rates last month.

He defended his decision in The Guardian last week when he said the economy had confounded gloomy forecasts made in the aftermath of the EU referendum and warned inflation would climb higher and stay well above the Bank’s target for longer without action.

He also said the Brexit negotiations should not necessarily prevent an increase in the Bank of England's base rate which is currently at a historic low of 0.25 per cent, falling from its previous peak of 5.75 per cent in July 2007.

Louise Wall, of the Coventry and Warwickshire Chamber of Commerce, said the session allowed businesses to raise financial issues with Saunders and also to hear his take on the economy.

She said: “It was a fascinating session which covered topics such as inflation, currency exchange and Brexit.

“It really is a two-way street, the Bank of England is keen to garner intelligence from businesses across the country and obviously hearing the thoughts of such a prominent figure in the UK economy is very valuable and interesting to our members.”