03 Nov 2023
At its latest meeting, the Bank of England's Monetary Policy Committee (MPC) held the base interest rate at 5.25%.
The latest decision marks the second time in a row that interest rates have been held at 5.25% – their highest level in 15 years.
According to the Bank, the UK economy won't see any growth until 2025. However, the Bank also expects inflation to fall 'sharply' over the coming months.
Responding to the latest interest rate decision, David Bharier, Head of Research at the British Chambers of Commerce (BCC), said: '[The] decision to again hold the interest rate at 5.25% will allay some concerns of the businesses we speak to that are unable to stomach further rises.
'Our research has shown that interest rates have grown as a key issue among companies. This is especially true for smaller firms and those in consumer facing sectors who have seen rising borrowing costs and decreased customer demand.
'The BCC's Quarterly Economic Survey for quarter three found that 45% of all firms cited interest rates as a concern. With inflation set to ease further and GDP and labour market data indicating the economy is cooling, the Chancellor's Autumn Statement must set out a plan for growth.'