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11:03 AM 9th May 2024
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Opinion

Bank Of England Holds Interest Rates At 5.25%

 
The Bank of England has held interest rates for the sixth time in a row still remaining at their highest level for 16 years.

Sam Martin, CEO of Peckwater Brands, said:
"The Bank of England is understandably unwilling to loosen its grip on inflation, particularly as concerns around rising food prices and wages remain. But if you want an example of just how blunt an instrument interest rates are in the fight against inflation, take a look at the hospitality sector, which finds itself battered from both sides.

"Hospitality businesses are facing higher costs across the board - labour, ingredients, taxes, energy. In turn, they are forced to pass on price increases to customers in order to stay afloat, and it is telling that food and drink businesses are now a key driver of inflation. But keeping a high base rate will not make their lives any easier.

"The Government must act. It faces the challenging task of balancing policies suited to fighting inflation with those that will allow hospitality businesses to overcome the obstacles they face. Keeping the alcohol duty frozen, enabling greater investment into hospitality startups and levelling up the labour market might just give these enterprises the resilience they need."