A LOCAL business leader has welcomed the Bank of England's Monetary Policy Committee's decision to hold interest rates.

Mr Andrew Ratcliff, chief executive of Bury and Bolton Chamber, said: "Holding interest rates will help stabilise the economic environment that local businesses operate in. The manufacturing sector still faces tough challenges.

"It is doing its best to adapt to a tough climate affected by global slowdown and will welcome the continued assurance of low interest rates."

He added: "Prices in a number of industries are, however, falling, so the Bank must be wary of the threat of deflation, which could pose a serious threat."