Chief executive Eric Anstee said there was no need for the rise announced on 6 November.
‘I am not convinced that the case for raising interest rates is proven,’ he said.
‘SME’s growth plans could be threatened by an increase in the cost of borrowing at this time.
‘The MPC decision may need to be reversed in short order if consumer spending and company growth slows,’ Anstee added.
Anstee may be out of luck though.
Most economists believe there will be further rate rises throughout next year with some predicting that the rate could hit 4.5% sometime in 2004.
The Bank’s decision to increase interest rate was the first rise in almost four years.
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