Businesses boosted by interest rate cut – Chamber

The Bank of England has cut interest rates to their lowest level in almost three years, providing a timely boost for businesses.

The decision takes the base rate below 4 per cent for the first time since January 2023.

It comes against a backdrop of easing inflationary pressures, with the latest data showing inflation running at 3.2 per cent, below forecasts.

Softer wage growth and signs of slowing economic activity have also contributed to the case for looser monetary policy.

Emily Stubbs (pictured), head of policy at Greater Birmingham Chambers of Commerce, said: “Thursday’s Bank of England rate cut offers welcome relief for firms across Greater Birmingham. 

“With inflation easing, lower borrowing costs should support cash flow and unlock investment - particularly for SMEs. 

“Nevertheless, confidence remains fragile - many businesses are still grappling with stubborn cost pressures, from labour and input costs to elevated energy bills, while assessing the practical impact of recent legislative changes. 

“To generate sustained growth, the government must take decisive action in the New Year on planning, regulation, skills, and reducing friction in UK‑EU trade."