Clive Owen LLP

There was no appetite for a rise in interest rates amongst North East Shadow MPC members this month. They are looking for a period of stability to allow previous rate rises to take full effect, and to hopefully see inflation continue on a downward trajectory.

The MPC is a partnership between The Northern Echo, Clive Owen LLP and Recognition PR, 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 interest rate.

Tim Bailey, partner at Xsite Architecture said: 'Hold steady' and vote for no rate change is my view. There’s no significant change in overview of industry or economy that would prompt a rate change. Activity levels remain slightly lower than 12 months ago, some industry commentary indicating growth in housing sector. Announcements around 'no change' in public spending post-election (either colour) is interpreted as no hike in NHS, school or housing spending. Infrastructure may rise but not by sufficient volumes to translate into significant growth. Private sector spending plans are slowing ahead of anticipated election and in expectation of lowering tender rates as work volume slips. So the next quarter is likely to be very flat with low numbers of announcements with a bounce later.”

Daniel Williams Solicitor & Director Latimer Hinks Solicitors said: “No change from me. Inflation has slowed but we are not out of the woods yet. Reducing the rate may spike inflation and reducing the rate too early has happened before in the past.

Paul Gibson, partner at Active Financial Planners said: “My vote would be to hold rates at this time. Rates have risen significantly in 2023 and the effects of these increases will take time to filter through. Recent data has shown that inflation is falling towards predicted targets however, uncertainty in the economy remains and a period of stability in the interest rate is now needed before making further adjustments.”

Nicola Bellerby, partner at Clive Owen LLP said: “I’m voting to keep the interest rate the same. I believe interest rates now need to stay high for at least a few months. Inflation still remains much higher than it should be and this could have a continued knock-on effect on wages and prices which needs to be avoided.”

Nick Pope, managing director of Premier Tech Aqua, said: “I would vote to hold as inflation is coming down and the full effects of recent increases are yet to be felt.”

Graham Robb, senior partner at Recognition PR said: “It should be ‘steady as she goes’ for interest rates and the Bank should indicate that interest rates will be stable for a while. Commercial banks must aim to reduce the differential between lending and borrowing and reduce mortgage rates for the long-term good of customers.”