THERE was no appetite for a change in interest rate by members of the North East Shadow Monetary Policy Committee (MPC).

Global concerns and the continuing Brexit uncertainty led members to conclude that the moment had passed for a rise in interest rates.

The MPC is a partnership between The Northern Echo 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.

Chris McDonald, Chief Executive Officer, Materials Processing Institute, said: “It is a hold from me. I feel it is too uncertain for anything else.”

Christopher White, finance director at Darlington Building Society, said: “The current political wrangling and its potential impact on the economy means that, in the short term, it would be surprising if there was a change in the bank base rate. Current economic metrics are also mixed; whist recent growth figures were better than some feared the three-month average was still flat. Employment remains strong but industry confidence factors have fallen significantly.

“I would therefore vote to maintain the bank base rate at its currently level. If a relatively benign outcome for Brexit can be negotiated later in the year, I think the MPC should then be looking at the capacity of the UK economy to manage some small increases in the rate.”

Daniel Williams, Solicitor, Trust & Estate Practitioner (TEP) at Latimer Hinks Solicitors, said: “In short, I would vote to keep rates the same. Last quarter saw the first fall in GDP, but I understand there are signs things may have improved which we will see at the end of the month. Increasing the rate could potentially rock the boat here. Whilst there is the reported improved wage inflation, this doesn’t seem such an issue at this point in time either such that an increase is needed to keep this under control. Taking these into account and Brexit, I say steady as she goes!”

Paul Gibson, Chartered Financial Planner at Active Chartered Financial Planners, said: “I’d say leave rates unchanged this time. We’ve been calling for higher rates for some time to “normalise” the situation where rates have been far too low for far too long. We have quite unhealthy side effects of low rates with investors taking more and more risk to try and squeeze out a return. The average house being 10 times the average wage is one example of a complacent approach to risk in our economy. Whilst the economy was picking up, we had some leeway to raise rates and the Brexit related weakening of Sterling gave us more opportunity to raise rates without a strong pound causing side effects.

“Now the wind is definitely changing. Trump’s trade wars are beginning to hurt the US economy and he needs lower interest rates in the US to keep the economy going, weakening the Dollar to keep exports flowing. The Eurozone is on life support with barely any growth. They have started up another 20bn euros a month of Quantitative Easing and lowered interest rates to -0.5%. China is deliberately weakening its own currency too and Sterling is caught in the middle and is rising (partly due of course to the potential reversal of article 50). The rise in Sterling will hurt exports, hurt the jobs “miracle” and hurt our GDP numbers (though we won’t find out for about 4 months when the figures come out).

“Overall, despite a rise in rates being potentially healthy, now is not the time as the world is moving into a new phase. Hold.”

Rachel Anderson, Assistant Director – Policy at North East Chamber of Commerce, said: “My vote would be for HOLD.

“We are still in very uncertain times with some evidence of projects being held back due to ongoing Brexit uncertainty. There was some optimism in the July trade figures which were better than expected so there appears to be no need this month to move rates. However, looking forward, the attacks on Saudi oilfields are likely to cause a spike in oil prices which may drive inflation higher over the coming months which may require the Bank to look at raising rates.”

Catriona Lingwood, Chief Executive of Constructing Excellence North East, said: “I would vote for no change in the bank rate.

“The construction industry has seen yet another downturn in its order book in its fourth successive month which has had a knock affect in employment numbers. Construction companies meanwhile reported a sharp drop in their confidence regarding the year-ahead outlook for business activity. The latest reading was the lowest since November 2012. “

Nick Pope, managing director, Premier Tech Aqua, said: “I would vote to hold as there is too much economic uncertainty right now. Best wait to see what kind of Brexit, if any, we are dealing with come 1st November.”

David Coates, Regional Managing Director of Newsquest Media Group Ltd: “I would vote to hold rates at the present level. I see no compelling justification to change at this time. The economy appears to be remarkably resilient despite the Brexit shenanigans, and the last thing we need now is any further uncertainty.”

Jonathan Willett, Director of Henderson Insurance Brokers Ltd, said: “I vote to leave the interest rate as it is giving the ongoing huge amount of uncertainty in the UK economy.”

Graham Robb, senior partner at Recognition PR, said: “We have no alternative but to hold rates this month as we see what happens with both Brexit and the wider economy and oil prices. Pity the poor savers!”