Paul Butterworth, CEO at Chambers Wales South East, South West and Mid, said:
“Despite the fall in inflation announced yesterday, the news that the Bank of England has decided to hold interest rates at 5.25% for the fifth time in a row was not unexpected.
“While no immediate change offers some stability with regards to short-term business planning, the high level the rate has been held at is still concerning for businesses in Wales. In our Quarterly Economic Survey for Q4 of 2023, 41% of Welsh businesses stated that interest rates were more of a concern to them than in the previous quarter.
“Yesterday’s inflation data and recent growth, however small, hints that we are heading in the right direction to create an environment where interest rates could fall later this year. In the meantime, the economy remains fragile and businesses will be looking to policymakers for reassurance and clear plans to drive growth.”
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