20 Jun 2025The Bank of England recently held interest rates at 4.25%, with its Governor warning that 'the world is highly unpredictable'. Inflation remains at its highest level in more than a year and above the Bank of England's target rate. However, the Bank did hint that further interest rate cuts could come as soon as August. Responding to the decision, David Bharier, Head of Research at the British Chambers of Commerce (BCC), said: 'Businesses remain under pressure from sharply rising costs. Domestically, the recent National Insurance hike has added significant strain, with our research showing eight-in-ten firms expecting a negative impact. 'Meanwhile, the bewildering maze of shifting tariff announcements is driving up the cost of global trade. Together, these factors have dampened business sentiment, which has yet to recover. 'Now, with further escalations in the Iran-Israel conflict, the economic risks are rising alongside the tragic human cost. Any major disruption to key shipping routes could trigger a repeat of the 2021 supply chain crisis which fuelled soaring inflation.'