MEMBERS of the North East Shadow MPC are still split on whether the time is right to increase the interest rate.

Uncertainty is dictating caution for the majority of members, with three members advocating for a small rise, believing the economy is strong enough to withstand it.

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.

Chair of the committee and finance director at Darlington Building Society, Christopher White said: “I feel we should hold interest rates at the current time. My hope is that we are able to reach clarity in early 2019 on the path we will take which will restore some certainty into markets and we can review interest rates with an ability to look at the mid and longer term more clearly”

Chris McDonald, CEO of the Materials Processing Institute, said: “This month it is a hold from me. The economic scene is so uncertain with the potential impact of Brexit that at this stage I believe it is not possible to have the confidence to make a rise.”

Graham Robb, senior partner at Recognition PR, said: “New wages growth figures show that the economy is resilient. We need to inject some realism into the economy for savers, therefore I think the time has come for a further rate increase.”

David Coates, managing director of Newsquest North East, said: “I think it’s a no-brainer to hold rates at the current level. Given all other uncertainties, the Bank of England must hold rates otherwise it risks adding to the current challenges of Brexit.”

Paul Gibson of Active Chartered Financial Planners said: “In the investment markets, Brexit is really coming into focus. Sterling is beginning to whipsaw downwards as global investors reduce their UK positions. The news coming out of the high street is grim reading for our consumer-focused economy. Whilst in recent months I have voted for a slow gradual rise of interest rates to steady Sterling and inflation, I think the time may have passed for now. Until some resolution comes out of the current political impasse, I believe rates should be held steady so as to not add any more pressure onto consumer and business spending.”

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Michael Lyons, Head of Finance and IT FUJIFILM Diosynth Biotechnologies, said: “Remain the same, given all the worry on Brexit, a change is the last thing the economy needs.”

Jonathan Willett, Director of Stockton-based Henderson Insurance Brokers, said: “I vote for interest rates to remain at the current rate until Brexit Negotiations have been concluded and agreed. There is too much turbulence at the moment.

Ajay Jagota, Chief Executive Officer of KIS Group, said: “Increase by ¼ % as employment figures show increase in wages and healthy employment figures are sustained pre-any Brexit deal, we should bank this opportunity now.”

Nick Pope, financial director, Godfrey Syrett, voted to increase interest rates, he said: “I will vote for a ¼ % point increase. I think the economy can withstand it and will enable a reduction in Q2 2019 should we need it if there is a hard Brexit.”

Gary Ellis, partner at Clive Owen & Co, said: “Given all of the current uncertainties in the markets; current economic climate, wage inflation fears etc I cannot see any reason to increase the current interest rates – and add to the confusion!”

Nicola Neilson of Latimer Hinks Solicitors said: “In light of the postponed parliamentary vote last Tuesday and the subsequent vote of no confidence, I anticipate that the Bank of England will vote to hold interest rates. Whilst Mrs May won the support of a majority of her party and is now back around the European table to try to re-negotiate the Brexit deal, the outcome of those discussions is still unknown. Whether or not she can negotiate sufficient changes to get the support of Parliament remains to be seen. Given the lack of certainty regarding the Brexit negotiations and the impact that the events of recent days have had on currency markets, I can’t envisage a situation where the Bank of England will want to raise interest rates at an already difficult time for the economy.”

Rachel Anderson, head of policy and representation at the North East England Chamber of Commerce, said: “My vote would be to Hold this month. My feeling is that the uncertainty around the Brexit process is simply too destabilising at the moment and an interest rate rise would have an unpredictable effect on the economy. Better to wait and see what happens.”