21 Mar 2025The Bank of England is walking a 'tightrope' on interest rates in the face of global uncertainty and cost pressures, says the British Chambers of Commerce (BCC). The Bank of England held interest rates at 4.5% following the March meeting of the Monetary Policy Committee. The nine-person MPC, which sets rates, voted by a majority of eight to one in favour of holding interest rates. The Bank also warned economic and global trade uncertainty has 'intensified'. US trade tariffs and retaliation to the import taxes from the likes of the EU, has created uncertainty for countries, the Bank says. Its decision to hold was widely expected, but Governor Andrew Bailey said the bank still believed rates were 'on a gradually declining path'. David Bharier, Head of Research at the BCC, said: 'Today's widely expected interest rate hold highlights the tightrope the Bank is walking, in the face of mounting global uncertainty and rising cost pressures. 'Our research shows business sentiment has fallen in recent months. This has been caused by domestic policy announcements, notably the National Insurance contributions increase, as well as uncertainties about a looming global trade war. 'The cost of borrowing weighs heavily on businesses every day. In this period of extreme uncertainty, lower borrowing costs will be crucial to boosting investment and growth.'