David Russ, managing director of the South Wales Chamber of Commerce, commenting on the Bank of England inflation report, said:
“The news that the Bank of England will not raise interest rates until levels of unemployment have fallen to seven per cent or below is to be welcomed.
“As this is unlikely to happen in the next few years, rates should remain low for some time and it will give businesses an impetus to make the investments they need to grow over the long term, with the confidence that their plans will not be derailed by a sudden hike.
“It should also give a boost to entrepreneurs and new start-ups, who can use this period to build a solid foundation for their business.
“We are pleased to hear that the Governor of the Bank of England, Mark Carney, has shown his commitment to a two percent inflation target as higher inflation could damage future growth prospects.
“We would like to have heard more about long term plans to underpin recovery, but while the guidance given today is not a legal commitment and will depend on economic circumstances, it is still a positive development.”