The base interest rate from the Bank of England has been held static at 5.25% but East Midlands Chamber is optimistic about cuts on the horizon.
East Midlands Chamber Head of Special Projects Richard Blackmore said: “A drop in the interest rate does feel like it’s not just on the horizon, but almost in touching distance. We could see that happen as soon as next month, especially when you consider the recent dip in inflation.
“Our Quarterly Economic Survey further underlines a buoyant outlook for the East Midlands where 59% of respondents reported an anticipated increase in turnover over the next 12 months and 45% expect a lift in profitability over the same period. A fall in inflation looks very likely but factors like GDP and labour market figures will play into where we get to – and when – with the interest rate.
“While the signs are generally encouraging in the East Midlands, borrowing costs remain a hurdle for business so I’d urge the Bank of England to hear the needs of businesses and ensure a rate cut is imminent. Our Manifesto for Growth 2024 sets out the key asks, specifically for the East Midlands, that are needed to take the region’s economy forward.”