North East Business Leaders Welcome Bank of England’s Interest Rate Cut

Paul Pearson, Director at OneGym, welcomed the decision, emphasising its positive impact on both businesses and consumers. “We welcome the interest rate cut, as financial confidence is crucial not only for individuals but for businesses like ours,” he said. “When people feel more secure, they are more likely to invest in their health and wellbeing, which directly supports the fitness industry. At the same time, a more stable economic environment allows businesses to plan ahead, invest in facilities, create jobs, and strengthen operations. This decision provides much-needed certainty, supporting both consumer confidence and long-term business growth.”

James Carver, Director at Carver Group, described the interest rate cut as a “welcome relief” for homeowners, buyers, and businesses in the region. “The Bank of England’s decision to cut interest rates is a welcome relief for homeowners, buyers, and businesses across our region. Affordability remains a pressing issue in the local property market, and lower borrowing costs will provide essential support for first-time buyers, investors, and businesses looking to expand. This move will help revitalise confidence in the property sector, which is a key driver of economic growth and investment.”

The Bank of England cut interest rates at the first Monetary Policy Committee meeting of the year, bringing the base rate from 4.75% to 4.5%. The move was widely expected following lower-than-anticipated inflation figures, with the annual inflation rate slowing from 2.6% to 2.5%. The UK economy has also stagnated in recent months, with GDP growing by just 0.1% in November after contracting in both September and October. The interest rate cut aims to ease borrowing costs and encourage economic activity. With the North East’s business community responding positively to the news, many hope this reduction will encourage investment and financial stability across the region.