Chamber's Cowcher warns of possible double-dip recession

NOTTS business leaders say the Bank of England's decision to keep interest rates at an historic low of 0.5% is no surprise given a "fragile" economy and a looming election.

George Cowcher, chief executive of the Derbyshire and Notts Chamber of Commerce, said: "It looks highly likely that rates will stay down at 0.5% until the end of the year and possibly beyond.

"It is telling that the Bank of England has still not formally announced the end of its quantitative easing programme.

"Although economic activity appeared to bounce back in February following the significant weather-related hit it took in January, VAT hikes and falling house prices mean that the threat of a double-dip recession remains a possibility."