19 Sep 2025The Bank of England has left interest rates unchanged at 4% as inflation remains nearly twice its target rate. Analysts had not expected interest rates to be cut given that prices rose at 3.8% in August. The Bank said it expected inflation to return to its key target of 2% but remains cautious on when it will again cut borrowing costs. David Bharier, Head of Research at the British Chambers of Commerce (BCC), said: 'A further hold aligns with the BCC's latest forecast, which expects no further cuts this year. Global factors such as tariffs, conflicts, and fragile supply chains, alongside domestic pressures – higher taxes and uncertainty ahead of the Budget – are clouding the outlook. 'SMEs are wading through a swamp of rising business costs which is impacting on confidence, investment and recruitment. Our latest survey shows that 73% cite labour costs as the top pressure, driven by the increase to employer National Insurance contributions. 'Breaking this cycle depends on boosting growth, exports and productivity – not further burdens on firms. The Chancellor will need to use the November Budget to support business investment and confidence, not undermine it with new taxes.'