Interest rate hold offers reassurance to businesses but unlikely to ease wider concerns - Chamber
Business leaders have cautiously welcomed the Bank of England’s decision to hold interest rates at 3.75 per cent while reiterating the need for more support on managing rising operating costs.
The hold was confirmed yesterday after five out of nine members of the bank’s monetary policy committee opting for a hold and the rest voting for a quarter point cut which would have taken borrowing costs down to 3.5 per cent.
The announcement follows a rise in inflation to 3.1 per cent in the 12 months to August, an increase from 2.9 per cent in the 12 months to July.
Emily Stubbs (pictured), head of policy at Greater Birmingham Chambers of Commerce, said: “Holding interest rates at 3.75 per cent will provide some reassurance for businesses and households, but it is unlikely to ease wider concerns about rising costs.
“With inflation continuing to climb and energy prices remaining volatile, many firms will be wary of further pressure on operating costs and borrowing in the months ahead.
“Businesses need stability and confidence to invest, recruit and grow.
“As the Government prepares for the Autumn Budget, targeted support on issues such as energy and business rates will be crucial in helping firms continue driving growth across our region.”
