Responding 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 decision to hold interest rates at 4% was widely expected, especially after yesterday’s figures confirmed that inflation remains stubbornly high.

“A further hold aligns with the BCC’s latest forecast, which expects no further cuts this year. Global factors such as tariffs, conflicts, and fragile supply chains, alongside domestic pressures – higher taxes and uncertainty ahead of the Budget – are clouding the outlook.

“SMEs are wading through a swamp of rising business costs which is impacting on confidence, investment and recruitment. Our latest survey shows that 73% cite labour costs as the top pressure, driven by the increase to employer NICs.

“Breaking this cycle depends on boosting growth, exports and productivity – not further burdens on firms. The Chancellor will need to use the November Budget to support business investment and confidence, not undermine it with new taxes.”