No interest rate cut from 3.75% means no relief yet for businesses looking to borrow

The Bank of England's announcement to hold the interest rate at 3.75% could add to the frustration of firms looking to invest to grow by borrowing, East Midlands Chamber has said.

East Midlands Chamber Director of Policy and Insight Richard Blackmore said: "With inflation having remained static at 2.8% in the latest data published this week, it was generally expected the Bank of England would not announce any cut in the interest rate just yet. For businesses looking to borrow so they can invest, that could mean some continued frustration, although the fact inflation did not increase, as had been forecast, will have brought some relief amid the high cost of doing business.

"Respondents in the Chamber's latest Quarterly Economic Survey reported a drop in confidence in the months ahead, when it comes to expectation of increased profitability or turnover, while investment in training and machinery was shown to have stalled. With East Midlands unemployment holding at 5.5% - above the overall UK level - the fact that less than half the respondents in the survey had attempted to recruit further underlines the trend around hesitant investment.

"I would urge policymakers to implement asks in the Framework for Growth - a Chamber-produced publication that sets out a series of reforms, such as reviewing business rates and widening energy support packages - to help incentivise investment."

View East Midlands Chamber's Framework for Growth here.

View East Midlands Chamber's Quarterly Economic Survey, Q2, 2026 here