The Association of Independent Professionals and the Self Employed (IPSE), has welcomed the decision by the Bank of England’s Monetary Policy Committee (MPC)’s to maintain interest rates at their current level of 0.5%.
The MPC’s decision was a continuation of its determination to keep rates low. The 0.5% rate has been in place since March 2009.
IPSE Economist Lorence Nye said: “The Bank of England has made a prudent decision in voting unanimously to keep interest rates at their record low. Our latest survey found freelancers’ confidence in the economy has worsened significantly compared to a year ago. It appears the Bank of England has the same concerns, given that they have lowered their 2016 growth forecast for UK GDP.
“Despite inflation rising slightly at the start of this year, it is still some way from the Bank’s target of two per cent. Governor Mark Carney has expressed concerns about the UK’s uncertain position in Europe, and believes this is hampering domestic economic growth. However, caution on rate increases should continue to be adopted by the Bank after June 23 until inflation heads closer to its target.”