Dorset Chamber welcomes Bank of England’s cut to interest rates

The Bank of England’s decision on Thursday this week to cut base rates by a quarter of one per cent, from 5.25 per cent to 5 per cent, has been well received by Dorset Chamber.

Chief Executive Ian Girling said the decision was a very welcome step in the right direction.

He said: “It reinforces hope for sustained growth, although it is still very early days following a challenging period of economic and political turbulence.

“It is the first cut in the interest rate in four years following 14 consecutive rises since March 2020 up to a 16-year high of 5.25 per cent in August 2023.

“There will be winners and losers in any interest rate decision but many businesses in Dorset will feel that this was the correct move and that it has been long overdue.

“It should support business and consumer confidence, while helping with decisions on investment and borrowing. Following recent government announcements on planning and infrastructure, today’s cut gives reason to be more optimistic about the months ahead.”