Interest rates raised to 2.25 per cent

23 September 2022

Business leaders are calling on Government to support businesses with swift and decisive action in today’s mini-Budget – following a seventh consecutive rise in interest rates.

Interest rates were raised yesterday to 2.25 per cent - the highest level since the 2008 financial crisis.

The Bank of England's half a point hike followed a three-way split in the voting.

Erin Henwood (pictured), policy advisor at Greater Birmingham Chambers of Commerce, said: “This announcement from the Bank of England marks the seventh time in a row that the Bank has raised interest rates in an attempt to curb spiralling prices.

“The extra cost of a 2.25% interest rate – the highest level in 14 years – is just more fuel to the fire for businesses already reporting eyewatering overheads and surging bills.

"Indeed, according to early analysis from our latest Quarterly Business Report, over two thirds of local firms reported concerns about inflation.

“The Government must use today’s mini-Budget to act swiftly and decisively to support businesses. As well as the already announced on increased National Insurance contributions, we desperately need to see short-term support to tackle labour shortages, supply chain disruption and rising material costs.”

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