By Claire West

The CBI today responded to the announcement from the Bank of England's Monetary Policy Committee (MPC) that it will keep interest rates the same.

Ian McCafferty, CBI Chief Economic Adviser, said:
“The recent data suggest that the moderate recovery predicted earlier in the year remains on track, with export activity improving and domestic activity holding its own.

“At the same time, imported inflationary pressures remain acute, with global raw material prices continuing to edge upwards. In addition, after two years of significant private sector pay restraint, there is a likelihood of some firming in earnings growth into 2011.

“If current trends continue, by the Spring I would expect the MPC to start to consider how and when to begin the process of moving monetary policy back towards a more normal footing.”