Business leaders in the West Midlandsare calling for interest rates to remain at historic lows to keep encouraging the manufacturing sector to boost exports.

To continue the positive momentum, business leaders are urging the Monetary Policy Committee to keep interest rates on hold this week.

Ross Gurdin, Policy advisor at Birmingham Chamber of Commerce Group said in the face of such a fragile recovery, it would be unwise to raise interest rates.

He said: “One of the Government’s aims is to rebalance Britain’s economy and it is clear that exporting is leading the way.

"The manufacturing sector has seen a significant boost with the devaluation of the pound by about 25 per cent since the credit crunch.

"High quality British goods are now much cheaper in foreign markets and British manufacturers are able to more readily compete on price.

“An early interest rate rise would dampen consumer spending even further as cash strapped households would face higher mortgage repayments and have even less money to spend.

“Many of the current causes of inflation are international pressures such as the rise in energy prices, droughts and floods that have destroyed many crops and thus increased the price of food and wages in developing countries such as India.

"It is therefore unlikely that a rise in UK interest rates would address these problems.”

The Coventry and Warwickshire Chamber of Commerce also wants interest rates to remain at 0.5 per cent for the good of the economic recovery.

Louise Bennett, chief executive of the chamber, said low interest rates was a key factor in helping to build a sustainable recovery from the recession.

She said: “The last two quarters of GDP figures equalised each other so we have seen no growth for six months.

“It’s vital that we start to see the economy begin to grow in a sustainable manner and low interest rates will play a significant role in that.

“Other factors will be taken into account – such as inflation – but the necessity to get the economy growing must outweigh that. The view is held very firmly that economic growth and recovery is not a given.

“While most businesses have always held the view that the deficit must be tackled, support is needed while the economy undergoes restructuring.

“Business holds the Bank of England within very high regard and believe it will undertake the best course of action to keep the economy growing.”