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The British Chambers of Commerce (BCC) states that in the current economic condition a threat to economic growth is far more serious that increase in inflation. An increase in bank interest rates will lead to a set back in economic growth and activity in the country. It is crucial that when the deficit cutting policy starts to bear effect, the rate of interest not be increased. Businesses need to have access to credit and finance at low rates so that they can gain stability and begin working on expansion plans. Avoiding an economic relapse has to be the primary concern for all economic and fiscal policies.
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