After the Bank of England’s decision to hold the interest rate at 4.5%, East Midlands Chamber has given its reaction.
Director of Policy and Insight Richard Blackmore said: “Given rising inflation, which is still 1% higher than the government’s target, the Bank of England opting to keep the ship steady and not cut interest rates just yet isn’t too surprising. With so many cost challenges making progress harder than it should be for businesses, like having to find funds to cover higher National Insurance contributions from 1st April, price pressures remain an ongoing problem. 6 out of 10 businesses in our Quarterly Economic Survey for Q4 2024 told us they expect to have to raise prices. That sentiment isn’t showing any sign of relief – our latest survey, covering the first part of 2025 will be released very shortly, and the first findings reveal an almost identical picture when it comes to businesses planning to increase prices.
“An interest rate cut is widely anticipated later this year and that would be welcome to businesses looking to borrow, but right now firms will be looking towards the government’s spring forecast next week, and the wider comprehensive spending review and will be eager to hear political leaders put policies forward that are fully supportive of business growth, more important than ever during this tough time for firms.”
