The BoE base rate decision comes as little surprise, but uncertainty is still impacting SMEs

The decision to hold interest rates at 3.75% will come as little surprise to businesses across the UK, even with inflation remaining above the BoE’s 2% target. Given the recent news that inflation has eased slightly and there is a new government in power, it was the correct decision to make. Our recent polls, run across LinkedIn and our Broker Hub WhatsApp channel, supported this decision with 93% predicting a hold and just 7% leaning towards a reduction.

Although the result was widely expected, it is unlikely to provide much additional confidence to SMEs across the country. Many are still struggling with the high taxes and energy prices, plus economic pressures driven by the ongoing conflict in the Middle East, and the choice to hold rates may add further stress.

Ambitious SMEs will not wait around for optimal economic conditions. We are seeing many businesses look for funding to support stability over growth, but with opportunities still arising, speed and decisiveness are key factors. We remain ready to back ambition, act fast and support SMEs in meeting their goals.