Interest rates will continue to fall, regional businesses are told
Interest rates are likely to continue to fall, but it is not clear how far or how fast, businesses in Coventry and Warwickshire have been told.
Graeme Chaplin, Agent for the Bank of England in the West Midlands, met firms across the region at a Coventry and Warwickshire Chamber of Commerce roundtable at the Royal Court Hotel in Coventry.
Companies from a cross section of industries including manufacturing, accountancy, international trade, training and electric vehicles, updated Graeme on how they are feeling in the current climate.
That information will then be fed back into the Bank of England and plays a part in the setting of rates.
Graeme said the fact inflation had fallen below the CPI target of two per cent was positive news but that there are still factors within the economy that meant there would be care when cutting interest rates.
He said: “These sessions are really useful in helping to understand what’s happening in the real world of business, where the challenges are and how businesses are facing up to those.
“Inflation was in double digits not too long ago due to a series of economic shocks but those shocks have eased and CPI inflation is now down below two per cent.
“That doesn’t necessarily mean that rates can be cut aggressively because there is still inflationary pressure in some areas of the economy, in particular in consumer services.
“Equally, we recognise that the economy isn’t running away with strong GDP growth.
“That’s why it is so important that the Monetary Policy Committee looks at all of the information available as it considers how best to achieve the target of two per cent CPI inflation sustainably in the medium term.”
Corin Crane, chief executive of Coventry and Warwickshire Chamber of Commerce, said: “We are very grateful to the businesses who used this opportunity to meet Graeme and feedback on everything from employment through to business confidence.
“It’s one of the many ways that the Chamber represents the views of businesses in the region to decision-makers at a local, regional and national level.
“Generally, there is still some uncertainty out there among companies but there is still confidence in this region and its ability to grow.”
Business leaders across the region will be gathering at the Chamber’s Annual Economic Conference on Friday, November 8 at the IXL Events Centre. For more information or to book a place go to https://www.cw-chamber.co.uk/events/annual-business-economic-conference-2024/
