Manufacturers in the North West, the Engineering Employers Federation (EEF), are urging the Bank of England’s Monetary Policy Committee (MPC) not to increase the interest rates of UK.

Manufacturers said that MPC should put hold on interest rates till the time recovery is not secure, as the economy of the country is too delicate. They added that a small change will impact on the inflation.

Lee Hopley, the EEF Chief Economist said, “The full extent of fiscal tightening has yet to make its mark and growth is dependent on a pick-up in private sector contributions from trade and investment”.

The EEE said that the shock contraction in the last 4 months of 2010 was a minor shock and the economy will be recovered in the first quarter.

David Kern, Chief Economist at the British Chamber of Commerce said that until the recovery interest rates should not be changed.

Meanwhile, The Central Bank said that rise in interest rates is unwilling as the recovery will lose its momentum.

Even the Consumer Price Inflation (CPI) has been increased to the annual rate of 4.4% in the month of February, which is the highest rate since October 2008.

Experts believed that interest rates will not be changed till the result of the first quarter economic growth figures which will come on 27 April.