CBI responds to UK interest rate decision

Alpesh Paleja, CBI Lead Economist, said:

“A rise in interest rates comes as no surprise. It’s likely that the Bank of England will tighten monetary policy again in the near future, with strong price pressures and further rises in inflation over the coming months a near-certainty.

“The resulting cost of living squeeze will hit the poorest households hardest, so it’s good to see the government taking steps to help the most vulnerable.

“But more broadly, it’s important that the Government sets higher longer-term ambitions for the economy, so that we break the current cycle of low underlying growth and higher taxes.”