Businesses warn of ‘unprecedented’ cost pressures as inflation fears grow | Business News
A business group has warned of the impact of an “unprecedented” surge in inflation on its membership, but said firms are wary of another rise in interest rates for fear it would knock the ongoing COVID recovery.
The British Chambers of Commerce (BCC) said there was already strong evidence of an economic slowdown in the final quarter of 2021 before the Bank of England raised interest rates in December to combat rising inflation expectations.
The cost of borrowing was adjusted from its COVID crisis low of 0.1% to 0.25%, despite the elephant in the room, energy costs, being outside the Bank’s control.
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Bank of England rate rise: ‘We had to act on inflation’
Then, policymakers also raised their inflation forecast, warning it was set to hit 6%…
