‘Unsurprising’ interest rates held at 4%, says BCC
‘Unsurprising’ interest rates held at 4%, says BCC
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The Bank of England has held interest rates at 4%, a move described as “unsurprising” by the British Chambers of Commerce (BCC) amid ongoing economic uncertainty and persistent inflationary pressures.
The decision is the final review of UK interest rates ahead of the Chancellor’s Budget later this month.
Reacting to the decision, David Bharier, Head of Research at the BCC, said: “With the Budget just weeks away, inflation well above target, and a continued uncertain economic backdrop, today’s rate hold at 4% was unsurprising.
“The decision was anticipated by the BCC’s latest forecast, which also expects no further cuts in 2025, and only gradual reductions through 2026.
“Although headline inflation eased slightly to 3.8% in September, firms are increasingly sounding the alarm about rising costs. The Bank references BCC data throughout today’s monetary report.
“In our latest survey of 4,600 firms across the UK, 57% reported concern about inflation, while 72% raised labour costs as a source of pressure to raise prices. For many, this is driven by rising taxation, and the expectation of more to come.
“Ahead of the Budget, the BCC’s message to the Chancellor is clear: no more tax rises on business. With interest rates only gradually coming down, Government must urgently focus on growth through boosting exports, tackling the skills crisis, and accelerating infrastructure project delivery. November 26th will be make-or-break for business investment and confidence.”
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