CBI responds to latest UK interest rate decision

Anna Leach, Deputy Chief Economist at the CBI, said: “The Bank’s decision this month shows that it is still too soon to call an end to peak interest rates.

“While inflation is coming down thanks to lower energy prices, labour market shortages and broader inflationary pressures mean higher rates are still needed to bring inflation back to the 2pc target.

“Rising interest rates, high inflation and tightening fiscal policy will challenge economic growth this year. The government needs to act decisively in the forthcoming Budget to reinforce the UK’s position as a global centre for innovation and the low carbon economy.”