Concerns have been raised among employers that that interest rate rises may have a negative effect on their firms. A new survey has revealed that the changes made by the Bank of England could mean is a concern to a third of north-east, while 77 per cent of firms in the region say that future investment plans could be under threat if rates rise again. This Thursday, the monetary policy committee will announce whether it has decided to lower, hold or raise base rates. If they were to rise, research from the north-east chamber of commerce (NECC) found that two in three businesses would be forced to push up prices, while half would expected a significant decrease in sales. Andrew Sugden, NECC director of membership and policy, said: "NECC warned last month that using interest rates as the sole method to manage inflation was akin to using a sledgehammer to crack a nut. "Here we have evidence of the impact that any future increases will have. It is totally wrong that the north-east economy should pay the price for over-heating in the south as we need above average growth here to catch up with other regions. He added that the area's economy had grown over the last few years and attracted many graduates and skilled workers to the region. This trend, he said, "should not be reversed".
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