15 Dec 2023
The Bank of England's Monetary Policy Committee (MPC) recently voted to hold interest rates at 5.25%, marking the third time in a row that the Bank has left the rate unchanged.
The Bank revealed that six of the nine members of the MPC voted to leave rates at 5.25%. The decision to leave rates at this level is intended to help bring inflation down by reducing individuals' spending power.
Andrew Bailey, Governor of the Bank of England, stated that there is 'still some way to go' to get inflation down.
Responding to the interest rates decision, David Bharier, Head of Research at the British Chambers of Commerce (BCC), commented: 'While a cut in the interest rate could have provided some relief for firms ahead of Christmas, [the] decision to hold at 5.25% was expected and allays fears of further rises.
'UK businesses have been faced with the twin shock of an inflation crisis and increased borrowing costs.
'The BCC's latest Economic Forecast expects only a 0.25% point cut in the interest rate for the whole of 2024, although businesses need to be prepared for any unexpected changes given the uncertain policy landscape.'