Bradford businesses were told recently financial markets now believe that interest rates are likely to stay on hold until well into 2016.
The Bank’s lower forecast for inflation had come about due to a number of things, notably falling food and oil prices recently. There is a risk of inflation falling further later this year, they were told.
The Bank of England’s Deputy Agent for Yorkshire, Will Holman, who presents quarterly to Bradford’s Chamber Council, said that EU quantitative easing would help inject economic impetus and inflation should come back up to its 2% target in time. Will was told by members that the rapid fluctuation of bank and building society interest rates wasn’t helpful, and there was also concern that deflation in the UK could lead to deferred spending and so a returning cycle of recession.