Reacting to the Bank of England’s latest announcement on interest rates, Paul Butterworth, CEO, at Chambers Wales South East, South West and Mid, said:
“Today’s announcement marks the 13th consecutive rise in interest rates. With the base rate now at 5%, Welsh businesses will continue to feel the combined impact of high interest rates, stubborn inflation and increased energy, materials and production costs.
“With inflation not falling as quickly as expected, it is understandable that the Bank of England must make difficult decisions to achieve economic stability and avoid the country entering a recession. However, these sustained interest rate increases will affect business confidence and stall investment plans as Welsh businesses continue to operate amid the uncertainty of a cost of doing business crisis, especially as over 96% of Welsh firms are SMEs.
“Reduced inflation and interest rates will be vital for Welsh business growth in the long-term and these actions need to be considered in a wider strategic conversation regarding investment in infrastructure, skills and trade for businesses in Wales to thrive.”
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