CBI NI responds to Bank of England interest rate decision

Angela McGowan, CBI Northern Ireland Director, said: 

“The Bank of England’s latest rate rise is the biggest in 27 years and follows in the footsteps of strong tightening by other central banks. It underscores the seriousness of our inflation problem, but also demonstrates the MPC’s willingness to act in response. 

“Despite early signs of some pipeline price pressures fading, it’s clear that we’re in for a hard winter. With further energy price rises potentially on the horizon, support for the most vulnerable households and businesses should be kept under review.  

“Monetary policy is typically the first line of defence against inflation when it is demand-led. However, the supply-side element of this current inflation crisis has made the Bank of England’s job much more difficult. 

“Without doubt, building resilience against future price shocks requires a concrete plan for strong economic growth.  So, the new Prime Minister must prioritise boosting productivity through greater business investment via incentives and business rate reforms.  Of course, initiatives such as investing in energy efficiency can support people struggling with the cost-of-living crisis – but at the regional level in Northern Ireland, an agile and supportive response to the inflation crisis really requires an Executive to be in place”.