Following the decision by the Bank of England to hold the base rate at 5.25%, Federation of Small Businesses (FSB) National Chair Martin McTague said:
“Yet again, the MPC has opted to stick instead of twist, a move which was widely predicted but which is no less disappointing for it.
“The high plateau rates are currently stuck at is now undermining growth, as small firms struggle to access affordable finance to help them expand.
“Inflation is now back on target, and holding off a cut in the base rate until a future date risks snuffing out tentative signs of a recovery in GDP, with the flat growth in April a warning sign.
“Even with services inflation coming in higher than expected yesterday, the danger posed by stifling growth must not be ignored, as doing so will have potentially devastating consequences for small businesses.
“Small firms will be hoping that the tipping point for a cut will be reached sooner rather than later, to help them invest and scale up.”