Commenting on the Bank of England’s latest rise in the interest rate to 5.25%, Jack Weaver, Chief Operating Officer at Norfolk Chambers of Commerce, said: “Businesses across Norfolk will be hoping today’s rise in interest rates is the last they will see. “While many will have already factored this increase into their plans, it is clear the economic environment is becoming stacked against smaller firms which make up more than 80% of our membership. They are the ones with less cash reserves and greater exposure to the volatility we’re seeing. There are glimmers of hope however as data from our Quarterly Economic Survey (QES) shows that fewer than half (46%) of Norfolk businesses expect their prices to increase this quarter, down from 61% in the previous 3 months. So whilst there remains significant uncertainty, businesses across our county are feeling modestly more confident about the future. We are also likely to see a further substantial fall in inflation in July as last year’s energy price rises drop out of the data. While inflation remains the top concern for Norfolk firms overall, interest rates have emerged as the second top concern, with 41% citing this as more of a worry than three months ago. Norfolk also remains over-exposed to volatility in sectors experiencing the biggest uncertainty. The tightness of the labour market is most significant in hospitality and tourism, agriculture and health & social care, further fuelling concern about skills, recruitment and talent retention. All of which stymies business growth. Our members and the wider business community in Norfolk will be watching closely for any further indications on the Bank’s plans and hoping this rate rise will have the desired impact on their inflationary pressures.”
