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Businesses react to BoE's interest rate plans

A senior member of the Bank of England's Monetary Policy Committee has told the BBC that an increase in interest rates before 2015 has not been not ruled out - but is unlikely to happen immediately.

Paul Fisher, who sits on the Bank of England's Monetary Policy Committee, said that interest rates could go up to 4-5% as early as next year. So how do businesses feel about this?

John Longworth, Director General of the British Chambers of Commerce told BBC Radio 5 live's Wake Up to Money: "The economy has relied on low interest rates... and it it goes up all the wrong things will happen so it's really very important they remain low for a very long time to come."

However Ray Boulger, mortgage expert for firm John Charcol, said it was possible for borrowers to protect themselves with 5-10 year fixed policies: "There's no reason why anybody with a mortgage can't actually get a good rate now that will avoid any problems they might have from rates going up."

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