Industry has been met with the Bank of England's decision to leave interest rates on hold in the face of worries about inflation.

Rises in oil and commodity prices had been of concern to both the Bank and businesses, and manufacturers’ organisation EEF believes that mounting threats to business and consumer confidence mean that interest rates will almost certainly need to be cut again in June.

“The economy has been through a series of shocks since the credit crisis hit last summer and the Bank has been right so far in responding with a measured approach on rates,” said EEF chief economist Steve Radley. “However, despite concerns on inflation, further cuts to interest rates are needed to prevent the economy from drifting towards recession.”