Bank of England Lunch – A Matter of Interest for Norfolk Business
On Thursday, Norfolk Chambers hosted Kieran Dent, the Bank of England’s Agent for the South East and East Anglia, at Barnham Broom for a confidential discussion of the Bank’s recent monetary policy announcements and the challenges facing Norfolk businesses. Discussions like these connect the Bank’s policymakers with what’s happening on the ground, directly informing the decisions made by the Bank’s policy committees – such as the Monetary Policy Committee, responsible for setting interest rates.”
Following an insightful presentation, businesses had the chance to ask Kieran’s input on a wide range of issues. Geopolitical events were raised as a major concern, with the recent US midterm elections and ongoing wars in Iran and Ukraine having an adverse impact business confidence. As ever, businesses continue to express their frustration at the ‘rollercoaster’ nature of economic volatility.
The Bank’s November Monetary Policy Report (NMPR) cites unsustainable wage growth as a driver of inflation, and formed part of the justification behind the decision to set interest rates at 4%. However, Norfolk businesses were quick to point out much of that growth was enforced through policy, not strategy, with rapid increases to the statutory wage floor contributing an additional £1.44m to the average SMEs annual costs. Their feelings were clear – businesses shouldn’t be punished for the Government’s mistakes.
Food prices were another hot-button issue. The NMPR expects food price inflation to rise as high as 4.75% by mid-2027, as energy pressures and extreme weather events intensify. Businesses were keen to understand the impact this will have on the supply chain, consumer spending and investment plans. They emphasised that increased spending on food does not necessarily mean that businesses are making more sales – and could be a reflection of the ever-rising cost of living.
The event provided Norfolk businesses with a valuable insight into the work the Bank of England carries out. It can often be difficult to understand what effect macroeconomic policy decisions made in London have on the microeconomic, day-to-day decisions taken by a business in Norfolk, so receiving some clarity from the body responsible for those major decisions is incredibly useful.
For 130 years, Norfolk Chambers has been connecting Norfolk’s business community with influential decision-makers at a local, regional and national level. Events like these allow us to make the voice of Norfolk businesses heard loud and clear, directly placing firms of all sizes at the heart of the policy process.