Commenting on the decision of the Monetary Policy Committee of the Bank of England to raise interest rates from 0. 5% to 0.75%, Kitty Ussher, Chief Economist of the Institute of Directors, commented:

“Business leaders will welcome the Bank of England’s continuing to take action in the face of rising inflation. Unstable prices add to the cost of doing business, and it is therefore important that the monetary authorities do everything they can to bring greater confidence into the system at a difficult time.

“Our most recent data from our members shows, however, that expectations of future inflation are still rising, so it may be that further corrective action will be needed in the months ahead, depending on how the UK economy is affected by fast-moving events elsewhere in the world.”