Chamber comments on fall in interest rate

Following the Bank of England’s decision to bring the interest rate down by a quarter point to at 4.5%, East Midlands Chamber has given its reaction. The rate is the lowest it has been since June 2023.

Director of Policy and Insight Richard Blackmore said: “For businesses looking to borrow, a slight drop in the interest rate may bring some comfort, especially against the context of growth prospects looking sluggish, with the Bank of England revising downward its forecast and so many other high costs to contend with this year.

“Price pressures remain high, with inflation the second highest concern of East Midlands businesses in our Quarterly Economic Survey after corporate taxation. With firms needing to foot additional cost for higher National Insurance contributions and an increased national minimum wage from April, it’s essential that political leaders prioritise measures that support business.”