East Midlands Chamber has said the Bank of England’s decision to keep the interest rate unchanged at 3.75% gives predictability to business but will frustrate those looking to borrow at a lower level.
East Midlands Chamber Chief Executive Scott Knowles said: “Keeping a steady ship amid an uncertain economic climate by not moving the interest rate yet seems a logical decision, especially with the ongoing Middle East conflict, but will be a frustration for firms looking to borrow at a better rate so they can invest to grow.
“Joint research we conducted recently with three other chambers of commerce regarding the impact of the Middle East conflict showed 8 out of 10 businesses across the Midlands region have seen higher costs as a result of the war, while in the East Midlands our Quarterly Economic Survey has shown hesitant investment and concern over high costs.
“Slightly eased inflation to 2.6% in June is an encouraging sign but is still above the Bank of England’s 2% target with further hikes this year driven by energy costs possible.
“The Prime Minister’s recent announcement of a 20% cut on business rates for pubs and clubs was a welcome forward step for that corner of hospitality but a full root and branch review is needed, alongside other measures outlined in our Framework for Growth, such as expanding energy support packages for business.
“With the economic climate still in a period of uncertainty, actioning such measures would alleviate tough trading conditions and help incentivise business to invest.”
View East Midlands Chamber’s Framework for Growth here.
View East Midlands Chamber’s Quarterly Economic Survey, Q2, 2026 here.
View the impact report of the Iran conflict on Midlands businesses here.
