FSB Chairman urges BoE to hold off on rate rise
UK inflation as measured by the Consumer Prices Index rose to 0.5% in March, according to the Office for National Statistics, and the FSB Chairman has urged the Bank of England to keep interest rates low to help small businesses.
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Inflation is now at its highest level since December 2014, but it remains below the Bank of England's 2% target, and the Bank has said it expects inflation to stay below the 1% mark this year.
Mike Cherry, National Chairman at the Federation of Small Businesses, said:
“Small firms are currently dealing with a raft of challenges, including the National Living Wage which came into effect this month, driving up costs and driving down modest profit. A recent FSB survey showed small business confidence hovering at its lowest level since 2013. Despite inflation edging up last month, our members welcome this ongoing period of low inflation which has helped to keep other operating costs manageable.
“Given today’s figures and the challenging economic outlook, we urge the Bank of England to remain cautious when considering whether to raise interest rates at its meeting later this week.”
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