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Businesses have raised their concerns that the Bank of Englands monetary policy committee (MPC) might raise interest rates above the six per cent mark in future.
The MPC voted yesterday to hold interest rates at 5.75 per cent and despite homeowners being encouraged by the rate, many market analysts predict it will hit the six per cent level before the year is out.
David Kern, an economic adviser to the British Chambers of Commerce (BCC), said a company formation would be grateful if the base rate was increased given the instability in the credit and equity markets, reports the Telegraph.
He urged caution however. "We remain very concerned that the markets still expect an increase in rates later in the year.
"We believe there are very strong arguments for the MPC to wait, and allow time for previous increases to have their full effect."
The Minutes of the meeting will be made available on August 15th allowing SMEs to gain further insight into future rate rises and set their tax planning measures accordingly.
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