Cumbria Chamber of Commerce is urging the Bank of England to think carefully before raising interest rates.

We delivered that message in person when Sir Jon Cunliffe, the Bank’s Deputy Governor for financial stability, spoke at a Chamber lunch in Kendal last week.

Sir Jon is a member of the Monetary Policy Committee, which voted by 6-3 in June to leave rates unchanged at 0.5%. It meets again on August 2, when many commentators expect an increase to 0.75%.

Chamber Chief Executive Rob Johnston said: “We told him that a rate rise in August could damage businesses by making borrowing more expensive at a time when many are already struggling to cope with rising costs.

“I’m pleased to report that we were pushing at an open door. Sir Jon shares our concerns and is cautious about an early rate increase.”

In this podcast, Sir Jon explains the Bank’s stance on interest rates and ponders why pay inflation and business investment have been sluggish despite growth in the economy and falling unemployment.

Click here to read more about Sir Jon’s visit to Cumbria and click here to read his speech to Cumbria Chamber in full.