BREXIT was still at the forefront of thinking when the North East Shadow Monetary Policy Committee (MPC) delivered a unanimous decision to hold the current interest rate with no further quantitative easing.

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: “2017 is a year where a lot of the uncertainty we saw last year will continue.

"The elections in Germany, France and other European nations will determine the long-term future of the EU, the US will get a new and very different president who may look to change the relationship between the US and Europe and the UK will continue the path of leaving the EU.

"All of these factors will have potentially significant impacts on the UK economy and the best path for interest rates.

"While I think the Bank of England should, at this point, maintain the rate at its current level it will be important for the MPC to monitor the outcome of some of the key events in 2017 as well as key economic data such as inflation.”

Ross Smith, director of policy at the NEECC, voted to hold interest rates.

He explained: “Economic growth held up better than many people expected at the end of 2016, and with many chamber members concerned about the prospects for inflation, an interest rate rise may be under consideration.

"However, our most recent survey showed some warning signs about the robustness of the economy heading into a potentially turbulent year.

"With uncertainty a major concern, it would be unhelpful to raise rates to soon, but the Bank should consider some robust forward guidance to help businesses plan as effectively as possible.”

David Coates, managing director of Newsquest North, which publishes The Northern Echo, said: “Theresa May stiffened her position on Brexit somewhat over the weekend and the markets have responded by taking the pound down by another one per cent.

"The pound has fallen in value by as much as 20 per cent since the Brexit result and while this is great for exporters in the short-term, uncertainties around supplier pricing and the resultant hike in commodity costs are a concern.

"Given such an uncertain outlook, I do not believe the Bank should increase rates and my vote would be to hold rates at the present level.”

Nigel Mills, chairman of the Entrepreneurs’ Forum, which represents more than 300 high-growth North-East companies, with a combined turnover of £2.3bn and 23,000 employees, said: “I would urge caution this month and not change interest rates or quantitative easing.

"We are still in a period of economic growth, especially in the service sector, but it is possible that this is the calm before the storm, so we should keep our powder dry in case the Government’s negotiations with the EU make action necessary.”

Anne Elliott, solicitor and chief executive at Latimer Hinks Solicitors, voted to retain the current rate and voted against quantitative easing.

She said: “The markets are reacting to the media quicker than ever, and have been especially sensitive to president-elect Trump’s announcements and tweets.

"For now, I believe we should maintain the current rates in order to provide some continuity, especially when you consider the uncertainty around Brexit and the fact that Mr Trump is set to officially take over from Mr Obama later this month, which could cause further volatility.”

Jonathan Willett, Ddrector at Stockton-based Henderson Insurance Brokers, said: “2017 could prove to be a crucial year for the UK’s economy as negotiations to leave the EU start to take shape, so I think it would be best to remain cautious.

"A hold in interest rates is the safe play and, I believe, a necessary one that will allow for stability and help boost investments, before the country takes the first steps into the unknown.”

Richard Hogg, managing director of Jackson Hogg Recruitment, said: “With manufacturing growth at a 30-month high and the UK economy exceeding post-Brexit predictions, it is best to hold interest rates and not to engage in more quantitative easing.

"There is further uncertainty to come this year, and we must wait to see whether the boost manufacturing has had from the weaker pound is enough to offset the increased cost of importing raw materials.”

Chris McDonald, chief executive of the Materials Processing Institute, said: “The economy needs as much support as possible in order to stimulate growth and give businesses the confidence to invest in new technologies, product development and creating jobs.

"The effects of recent exchange rate changes are just coming through, so a hold, at this time, would be beneficial and bring stability to the foreign exchange.”

Hirohito Imakoji, managing director of Liebherr Sunderland Works, said: “I would vote to leave the interest rate and the quantitative easing at the current and stay away from any revision in either direction.

"The weak pound is supporting exporters and therefore adding momentum to the economic performance.

"My concerns are still around the private consumption as one of the main drivers of the economy with the increasing inflation in the short-term and record high debt rates.

"In my opinion the general outlook for 2017 is better than last year and 2017 will hopefully bring more clarity on how the Brexit will look like which is a big unknown for our sector.”

Les Hodgson, managing director of Next Level Financial Management, said: “The longer-term effects of Brexit are still unclear.

"Opinions differ among experts and vary from positive to negative.

"European elections are coming up in various countries and there appears to increasing support for right wing policies.

"The banking sector in Italy is unstable and this might trigger off a further lack of confidence in the sustainability of the EU.

"Economic news in UK is largely positive but many feel the worse is still to come.

"My overall view is interest rates should remain unchanged until domestic and international issues stabilise.”