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Payment protection: FSB urges MPC to hold interest rates

The Federation of Small Businesses (FSB) has urged the Monetary Policy Committee (MPC) to keep interest rates at 0.5 per cent.

Confidence within small businesses fell dramatically in the last quarter of 2010, with service sectors suffering badly in the run up to Christmas.

John Walker, national chairman of the FSB, said: "The Bank of England must look to promote growth and leave tackling inflation as a medium term priority, at least until the impact of the increase in VAT and fuel duty has levelled out.

"Small business confidence is low, so it is vital that this important sector can begin to grow again."

Mr Walker added that he understands an increase in interest rates will help alleviate inflation, the UK must try to avoid a "jobless recovery" amid high levels of unemployment and the forthcoming public sector job cuts.

 The MPC is due to meet to discuss interest rates tomorrow (February 10th).

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.
 ADNFCR-2776-ID-800394320-ADNFCR



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