Commenting on yesterday’s decision to keep the base rate at 0.5% for the eleventh consecutive month, he said: "Rates need to be kept on hold indefinitely. You wouldn't take a
plaster-cast off of a broken leg until you knew the bone had healed sufficiently. The same goes for the lending market. It simply hasn't had sufficient time to recover enough to withstand the impact of a rate rise.
“The MPC needs to make sure there are enough lenders competing to satisfy the built up demand of borrowers. A rate hike before this situation would be catastrophic to recovery.”
