INTEREST rates must remain stable to counteract the uncertainty in the economy, particularly ahead of the EU referendum in June.

That was the verdict of the North East Shadow Monetary Policy Committee (MPC), which delivered a unanimous decision to maintain interest rates with no further quantitative easing.

The MPC is a partnership between The Northern Echo, the North East Chamber of Commerce (NECC) and Darlington Building Society, which considers the state of the region’s economy and gives experts from a variety of sectors the opportunity to argue their case for a shift, or hold, in the rate.

Chairman of the committee, and finance director at Darlington Building Society, Christopher White, voted in favour of maintaining the rate.

He said: “The uncertainties we see both globally and on a domestic level means there isn’t the financial resilience in the market for a change in interest rates at the moment. Furthermore, I think the uncertainty we face around a vote on a potential Brexit later in the year means continuing with interest rates as they are is probably the most sensible route forward.”

David Pearson, of Constructing Excellence in the North East, said: “From what I’ve heard around the table, and my own feelings, I felt there wasn’t the room to increase the rate, although there is certainly room to reduce it.”

Hirohito Imakoji, managing director at Liebherr-Sunderland Works Ltd, voted to maintain the rate, citing manufacturers benefit from low interest rates, which helps secure finance, as well as keeping the exchange rate low, which is good for exports.

He added: “On a more macroeconomic side, I believe the economy in the UK as a whole is on a healthy path, but any rise in interest rates would put that at risk.”

Ross Smith, NECC policy director, was concerned about the impact of a rate rise on exporting.

He said: “My biggest concern on bank rates is the impact on sterling. The North-East relies heavily on exporting and exporters are under significant pressure.”

Graham Robb, senior partner at Recognition Marketing and PR, believes the Bank of England has missed the window to raise interest rates.

He said: “The amount that business may have set aside for interest rate rises has been eaten away by Government initiatives, such as the Living Wage and workplace pensions, and it’s only by productivity gains these extra costs will be negated.”