Early interest rate rise a huge risk, BBC warns

A premature interest rate rise could present a “huge risk” to the British economy, the British Chambers of Commerce (BBC) has warned.

The business lobby group said that the UK’s dependence on consumer spending and mortgages meant it was “particularly sensitive” to interest rates.

The warning came as the BBC trimmed its growth forecast for 2014 to 3% from 3.2% and 2.8% from 2.6% for 2015.

It said the lowered forecast was an “ominous warning sign”.

John Longworth, BBC director general said “Downgrades to our growth forecast are a warning sign that we still face a number of hurdles to securing a balanced and sustainable recovery,”