East Midlands Chamber has said the Bank of England’s decision to keep the interest rate unchanged at 3.75% could increase anxiety of firms looking to borrow, alongside fears of a rising fuel prices and higher inflation resulting from the Middle East conflict.
East Midlands Chamber Director of Policy and Insight Richard Blackmore said: “With concern over the potential for inflation to rise toward 3% this year as a result of the Middle East conflict, instead of reaching the Bank of England’s 2% target, keeping the interest rate static was widely expected.
“When you consider the weight of challenges and the tough landscape that businesses are having to wade through with high costs, changing regulation like the Employment Rights Act and the impact of conflicts around the world, for those businesses looking to borrow, waiting longer for an interest rate cut will be an added frustration.
“Unemployment in the East Midlands, although fallen slightly, still stands above the UK level at 5.6%, while the Chamber’s soon to be published Quarterly Economic Survey for the first quarter of 2026 paints a picture of hesitant investment intention and concern persisting over corporate taxation and inflation.
“The Chamber’s Framework for Growth outlines a series of proposals that, if adopted by policymakers would make a significant difference in enabling growth, by incentivising businesses to invest to grow.”
To view East Midlands Chamber’s Framework for Growth click here.
