Reacting to the latest interest rate decision by the Bank of England, David Bharier, Head of Research at the British Chambers of Commerce said: 

“Today’s widely expected interest rate hold highlights the tightrope the Bank is walking, in the face of mounting global uncertainty and rising cost pressures.  

“Our research shows business sentiment has fallen in recent months. This has been caused by domestic policy announcements, notably the NICs increase, as well as  uncertainties about a looming global trade war.  

“Inflation could remain elevated for longer. To manage cost pressures, firms are increasingly looking to increase their own prices or hold back on investment. Labour costs, driven by NICs and NLW increases, are cited by businesses as the top source of pressure. 

“The cost of borrowing weighs heavily on businesses every day. In this period of extreme uncertainty, lower borrowing costs will be crucial to boosting investment and growth.”