Interest rate hold expected, but cost pressures persist – Chamber

The Bank of England’s decision to hold interest rates at 4.25 per cent came as no surprise — but concerns remain over the potential for rising energy prices amid ongoing geopolitical tensions, the Greater Birmingham Chambers of Commerce (GBCC) has warned.

The decision, announced yesterday, follows new official data released on Wednesday showing Consumer Prices Index (CPI) inflation easing slightly to 3.4 per cent.

Commenting on the interest rates hold, GBCC acting deputy CEO Raj Kandola (pictured) warned about businesses being concerned about the underlying cost pressures.  

Raj said: “It’s no surprise to see the Bank of England hold interest rates given the data we have seen which showed softening employment and slower wage growth.

“Early analysis from out latest Quarterly Business Report underlines the cost pressures firms are facing on a daily basis and there will be concerns that energy prices will spike in the coming months as a result of geopolitical tension in the middle east.”