MEMBERS of the North East Shadow MPC were split over potential interest rates cuts in the wake of the Brexit vote.

Ross Smith, North East England Chamber of Commerce (NEECC) director of policy, voted to hold rates and quantitative easing.

He said: “I expect there will be serious consideration to cutting rates to provide some stimulus.

“However, I think the Bank should hold its fire at the moment.

“It is too soon to judge what the impact on the economy will be, and there is a risk of rising inflation due to the fall in the pound.”

Anne Elliott, chief executive at Darlington solicitors, Latimer Hinks, also voted for an interest rate freeze.

She said: “The referendum has caused economic instability and more change would create further unease.”

However, Nigel Mills, chairman of the Entrepreneurs’ Forum, said change was necessary.

He added: “I would reduce rates to 0.25 per cent.

“Only by making money available to help businesses grow will they fully be able to take advantages of opportunities that arise from the country’s decision to leave the EU.”

Christopher White, committee chairman and finance director at Darlington Building Society, added: “Since the EU referendum result there have been massive fluctuations in the financial markets with predictions all but impossible.

“It will be interesting to see the MPC’s decision on whether a reduction in the bank base rate is required or if they will wait until early August.”

The MPC is a partnership between The Northern Echo, the 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.