CBI responds to Monetary Policy Committee decision on interest rates

Alpesh Paleja, CBI Lead Economist, said:

“Against the backdrop of stubbornly high inflation, another hefty rise in interest rates was largely expected.

“While the freezing of the energy price cap will reduce near-term peak inflation, price pressures are still set to remain strong and the MPC will be keeping a close watch in the coming months.

“With signs of an economic downturn coming down the track, firms will be looking to the fiscal statement to help perk up confidence and get more firms investing and growing.”