“Yesterday’s CPI data confirmed that inflation remains stubbornly high, so today’s decision by the Bank of England to hold interest rates at 4.25% comes as no surprise.”

“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.

“With borrowing costs at their highest since the 2008 crisis, businesses and households are increasingly anxious for further rate cuts. The Bank are looking to take a gradual path, but the current wave of uncertainty could slow that down.”