Latest interest rates hold will reassure business – Chamber

The decision to again hold interest rates at 5.25 per cent by The Bank of England will bring a level of stability to firms, Greater Birmingham business leaders said. 

The Bank left interest rates on hold for the fourth successive meeting yesterday after the Monetary Policy Committee voted by a majority of six to three to maintain the interest rates at 5.25 per cent.

Bank of England governor Andrew Bailey said: “If we were to keep the bank rate at 5.25 per cent for the next three years, we think it's likely that inflation would eventually fall significantly below target."

The Greater Birmingham Chambers of Commerce (GBCC) was optimismistic with inflation expected to decrease over the coming months, but remained concerned about wage growth and cost pressures. 

Cameron Uppal (pictured), GBCC policy and public affairs advisor at said: “Although many businesses would have preferred for a cut in interest rates, the decision to hold rates at the current level will bring a level of stability and hopefully reassure businesses that we have seen the last of further hikes.

“It is also somewhat positive news to hear that the Bank of England's projections for falling inflation is more optimistic with inflation expected to come down earlier than expected.

"However wage growth is likely to remain a challenge in the long term and cost pressures remain prevalent for many businesses – as evidenced in the data we gathered for our latest Quarterly Business Report

“In what is likely to be a General Election year, we at the Chamber will continue to advocate as the voice of regional business to push for stable macroeconomic conditions to allow businesses to plan forward with confidence."