Responding to the Bank of England’s decision to hold interest rates at 3.75%, Cambridgeshire Chamber of Commerce Engagement Manager, Connor Butler said:
“The Bank of England’s decision to hold interest rates is the right one for businesses.
“At 3.75%, rates are already restricting investment. A further increase would have raised borrowing costs, placed additional pressure on cash flow and made it even harder for firms to commit to new equipment, premises and jobs.
“Businesses continue to face significant cost pressures across wages, employment, energy, fuel and their supply chains. Adding another increase in financing costs would have further weakened confidence at a time when we need firms to invest and grow.
“Holding rates provides some welcome stability, but it does not remove the wider pressures. Businesses now need a clear and supportive economic environment that gives them the confidence to make long-term decisions.
“The focus must remain on reducing the cost of doing business and creating the conditions needed for sustainable growth.”
The Bank of England voted to maintain Bank Rate at 3.75%.
More detail on the Bank’s decision can be found here