MEMBERS of the North-East Shadow Monetary Policy Committee (MPC) are moving towards a majority supporting a rise in interest rates after four of the eight attendees voted for an increase.

The MPC is a partnership between The Northern Echo, the North East England Chamber of Commerce (NEECC) 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, said: “In 2017 we have moved a little bit away from Brexit and there is no moving away from the fact that the resilience of the economy to Brexit has far exceeded what was generally expected from an economic point of view.

“A potential rise in interest rates may be a positive move at the moment.”

Rachel Anderson, head of policy and representation at NEECC, said: ”Generally, the economy is doing very well in the North-East, we have a lot of companies who are reporting buoyancy.

"With that said we are picking up one or two signs of things to watch; temporary versus permanent recruitment, exports and imports and tightening around lending criteria.

“Inflation is a key driver of the decision and we have seen a steady rise, the question is whether it is at a high enough level and a high enough velocity that actually a rise now would be prudent to try and rein it back a little bit.

"At the same time, while the Brexit debate is still around, there is uncertainty over investment and I think there is a balance to be struck here.

"We do have a looming danger of some inflation coming and too much would be a bad thing, but similarly we don’t want to choke off investment and that’s the tipping point that we are at.”

Les Hodgson, managing director of Next Level Financial Management, said: “I think the big danger of the uncertainty from America seems to have receded a little bit, Trump’s presidency seems to be settling down from the worries people originally had.

"Overall I would echo that people know there is change coming and they are not fearing the change, a little like the millennium bug that we were all worried about.”

Catriona Lingwood, chief executive at Constructing Excellence in the North-East, said: “Brexit had a bit of an issue with regard to a number of projects not going ahead, not so much in our region, but definitely on a national basis.

"Confidence in the market has picked up and projects are progressing through, there is a lot of bidding going on and that is a very healthy sign.”

Graham Robb, chairman of the Institute of Directors in the North-East, said: “Generally I’m feeling confident about my own business and I’m feeling confident about the business of my clients.

"I’m looking at the GDP figures that were announced in January, which defied expectations, as well as the fact that the Office for Budget Responsibility has increased its expectations for growth.

“The Budget, although it hurt me personally from a director’s point of view, was benign and a little bit boring; on the basis of all that I am feeling positive about the economy and that we can risk a rise in interest rates.”

Richard Hogg, managing director of Jackson Hogg Recruitment, said: “Generally we are seeing quite a lot of confidence in the market, the majority of my clients are recruiting.

"Current interest rates are good for my clients to be investing in both capital equipment and recruitment and from what I understand from my client base they are very keen for that to continue.”

Anne Elliott, solicitor and chief executive at Darlington-based Latimer Hinks Solicitors, said: “The commercial and residential property markets are quite buoyant.

"I’m very positive as is everyone else up to now but I do worry that we are in this bit of la la land where we don’t know what’s happening, uncertainty isn’t good for anyone.

"We have uncertainty and we are going with the flow at the minute.”

Ajay Jagota, chief executive of Keep It Simple Group, added: “Looking at the property sector, in particular the private rented sector, I would say that the general consensus is that there hasn’t been any major shift and no fallout from Brexit.

"2017 has started off fairly well, the only issues that are prevailing are all to do with the Chancellor’s budgetary changes that will kick in from April.”