British Chambers of Commerce (BCC) has warned that if the interest rates are increased now then the recovery process which has just started will stop totally. BCC was speaking as the voice of the industry since it is the biggest association of businesses in Britain.

It also said that while public sector cuts are a bigger concern than inflation, it surely cannot be neglected. David Kern, BCC chief economist of BCC said that recovery process is still facing a threat in 2011 and keeping in mind this fact, it would be killing to raise rates.

To make the recovery more secure and spontaneous, rates should not be touched at all.

The BCC also accepted the fact that inflation and high costs of almost everything is a big concern for the families. The outgoings of families have far exceeded because of the cost of petrol and energy. The wages have, on the other hand, failed to keep pace.

This situation forced the Bank of England to raise the rates from the current level of 0.5 per cent. The latest data has depicted that economy expanded by 0.4-0.5 per cent in December.