Fifth consecutive interest rate hold leaves firms frustrated – Chamber

The Bank of England’s decision to hold interest rates for the fifth consecutive time is frustrating for many Greater Birmingham firms, business leaders said today.

Interest rates held at 5.25 per cent – keeping them at their highest for 16 years – although the Bank said the prospects for a cut are now “moving in the right direction”.

However, it remains a source of frustration for businesses who were hoping for some movement following the drop in inflation to 3.4 per cent that was announced on Wednesday.

Cameron Uppal, policy and public affairs advisor at Greater Birmingham Chambers of Commerce, said: “With this week's news that the rate of inflation dropped to its lowest levels in over 18 months, the Bank of England’s decision to continue to hold interest rates at the highest rates seen in 16 years for the fifth consecutive time will be a cause of frustration for local businesses, who were hoping to see some movement on this figure.

“Heightened rates have no doubt had an impact on household spending, which in turn has dented consumer spending.

“A number of hospitality firms we work closely with continue to express their concerns around this.

“With a number of local elections and a West Midlands Mayoral election on the horizon, 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.”