Responding to the Bank of England’s decision this week to reduce the base rate by 0.25% to 4.25%, Hampshire Chamber Chief Executive and Executive Chairman Ross McNally said:
“This is a step in the right direction, a cautious measure of relief at a time when there are indicators of lower UK inflation after such a long period of enduringly high rates. The move will reduce borrowing costs and ease pressure on millions of households and businesses. It is a measured response to downward inflation amid ongoing uncertainty around global trade tariffs. Most businesses expect the Bank to remain cautious and tread carefully on future rate cut decisions. The Bank is right to take balanced, measured steps and be responsive to the wider economic picture while continuing the fight against inflation.”
David Bharier, Head of Research at the British Chambers of Commerce said of the rate cut:
“The interest rate cut to 4.25% will help absorb some of the shocks that businesses are facing on multiple fronts. Our research has been clear that SME sentiment has been falling since the twin developments of domestic tax rises and a global trade war.
“Many firms, desperate for financial respite, will be keen to see further rate cuts in the months ahead. National insurance hikes, alongside other cost pressures, are already having an impact, including increased prices, hiring freezes, and reduced investment. BCC has been calling for a tax roadmap to give firms some idea of when pressures will ease.
“On the global front, this afternoon’s announcement on a framework deal between the US and the UK could help improve business and investor confidence. However, the impact of the wider tariff war will still be felt. Progress elsewhere, such as the EU-UK reset and this week’s trade agreement with India will be significant, though their full impacts may take months to be seen.
“The next few months are likely to remain volatile, and the full impacts of a global trade war, are still uncertain. Businesses will be looking to Government to provide stability and avoid any further pain.“
About Hampshire Chamber of Commerce
Hampshire Chamber of Commerce is the independent voice of local business across the county and one of the largest regional business networks in the UK. With a strategic vision to ‘unlock Hampshire’s potential’, Hampshire Chamber brings together the combined influence, strength and expertise of the county’s three former major chambers. It works with over 2,000 individual firms spanning all sectors and sizes of business. Member services include training, advice, international trade documentation, events, networking opportunities and lobbying to policymakers on issues affecting business. Hampshire Chamber’s business network is designed to help any employer to grow and thrive irrespective of their stage on the enterprise journey.
About the British Chambers of Commerce - Where Business Belongs
The British Chambers of Commerce (BCC) sits at the heart of a powerful network of 51 Chambers of Commerce across the UK, representing thousands of firms. It provides a unified voice for these companies, rooted in their communities, at the national level. We link our UK network with over 75 international member chambers, to promote trade and investment, and work for a better future for businesses around the world.
For more information, visit: www.britishchambers.org.uk