Reacting to the latest interest rate decision by the Bank of England, David Bharier, Head of Research at the British Chambers of Commerce said:
“With the Budget just weeks away, inflation well above target, and a continued uncertain economic backdrop – today’s rate hold at 4% was unsurprising. The decision was anticipated by the BCC’s latest forecast, which also expects no further cuts in 2025, and only gradual reductions through 2026.
“With headline inflation likely to have peaked at 3.8% in September, firms are increasingly sounding the alarm about rising costs. The Bank references BCC data throughout today’s monetary report. In our latest survey of 4,600 firms across the UK, 57% reported concern about inflation – while 72% raised labour costs as a source of pressure to raise prices. For many, this is driven by rising taxation, and the expectation of more to come.
“Ahead of the Budget, the BCC’s message to the Chancellor is clear: no more tax rises on business. With interest rates only gradually coming down, Government must urgently focus on growth through boosting exports, tackling the skills crisis, and accelerating infrastructure project delivery. November 26th will be make-or-break for business investment and confidence.”