The Bank of England's decision to hike interest rates to 1% will be a blow to businesses already facing rising costs.
Suren Thiru, head of economics, at the British Chambers of Commerce (BCC), said the decision will cause 'considerable alarm' among households and businesses given the rapidly deteriorating economic outlook and mounting cost pressures many are facing.
He said the while the Bank of England faces an unenviable trade-off between soaring inflation and a wilting economy, higher interest rates 'will do little to address the global headwinds and supply constraints driving this inflationary surge,' he warned.
