The snap General Election was at the forefront of thinking when, the North East Shadow Monetary Policy Committee (MPC) delivered a majority decision (6–3) to hold the current interest rate, although a number of members feel that the time is right for rates to start rising.

The MPC is a partnership between The Northern Echo, the North East England Chamber of Commerce 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.

One dissenting voice was Graham Robb, senior partner at Recognition PR, who said: “Brexit or the General Election are not good reasons to delay tackling inflation.

"I’d like to see a modest rate rise to head off inflationary pressures.

"Inflation steals savings and destroys jobs.”

Also advocating for rates to begin to rise was Paul Gibson, director at Active Financial.

He said: “The effect of the current interest rates on my industry has been spectacular, with the low cost of borrowing and low returns on cash sending asset prices soaring.

"It does feel that small, gradual rate rises may be beneficial to keep prices from getting out of control and giving Britain room to cut rates back down again if things get bumpy.

"I would advocate “forward guidance” where the Bank of England sets out a plan of gradual, measured rate rises over a few years.”

Chairman of the committee and finance director at Darlington Building Society, Christopher White, said: “The factors influencing whether interest rates should be changed continue to get more and more complex.

"While the snap election called by Theresa May adds to the climate uncertainty in the UK, the language and position of the EU appears to be toughening.

“The results of the election in France will not alleviate the EU’s increasingly hardening stance but most commentators believe the current Government will be returned to office with an increased mandate.

"The UK’s economic growth appears to have slowed in Q1 2017 and the volume of house lending and house prices have both seen recent reductions.

"However, with inflation now higher than the two per cent guidance I feel the time is right for the ‘slow and steady’ interest rate increases described in the Governor’s forward guidance back in 2015.”

Ross Smith, director of Policy at the North East England Chamber of Commerce, said: “Given the instability of a general election, a shift in monetary policy this month wouldn’t be appropriate.

"However, Chamber members are reporting significant concerns about inflation and – particularly for manufacturers – exchange rates, so the Bank of England has to be prepared to signal at what point it will look to increase base rate.”

Chris McDonald, chief executive of the Materials Processing Institute, based near Middlesbrough, said: “There is plenty of economic and political uncertainty, so I would keep interest rates as they are for now.

"There is also a clear need for continued investment in infrastructure, and research and development, which will lead to greater economic prosperity across the country.”

Jonathan Willett, director at Stockton-based Henderson Insurance Brokers, said: “Given the political uncertainty brought about by the snap General Election, together with the recent drop in GDP growth, a hold would be wise at this time.

"After the election result we will have a clearer picture of how the Brexit negotiations will play out, so this needs to be considered before any change in the base rate.”

Richard Hogg, managing director of Jackson Hogg Recruitment, said: “The UK’s manufacturers need stability and certainty, the looming general election means the Government cannot provide this in the coming weeks, and I feel that changing additional variables such as interest rates and quantitative easing would not add anything positive.”

Nigel Mills, chairman of the Entrepreneurs’ Forum, said: “Taking into account the quarter one GDP figures, which show that economic growth could be starting to slow, and the uncertainty in the build-up to the snap General Election, I think we should hold interest rates and not increase quantitative easing.

"Whatever the makeup of the next government, it will need all of the economic tools at its disposal during Brexit negotiations with the EU.”

Anne Elliott, solicitor and chief executive at Latimer Hinks Solicitors, said: “Due to the political and economic uncertainty the UK now faces due to the snap General Election, I believe interest rates need to remain the same in order to increase stability in a time of political instability - both national and international.”

Hirohito Imakoji, managing director of Liebherr Sunderland Works, said: “Recent data shows a reversal of the positive trend that the economy has taken in 2016, which results in a call for a cautious approach to monetary policy.

"Although the manufacturing sector seems to be performing better as exporters are benefiting from a low GBP, private consumption appears to be starting to struggle and I can see an increase in the interest rate having a negative impact on private households.”