Interest rate drop welcomed by Chamber on the back of inflation fall

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Interest rate drop welcomed by Chamber on the back of inflation fall

A leading business figure in Coventry and Warwickshire says the economy could be ‘heading in the right direction’ after the Bank of England cut interest rates.

The Bank of England’s Monetary Policy Committee voted to cut rates to 3.75 per cent – their lowest for almost three years – on the back of a drop in inflation to 3.2 per cent.

Interest rate drop welcomed by Chamber on the back of inflation fall

Corin Crane, chief executive of the Coventry and Warwickshire Chamber of Commerce, said the drop in rates and inflation would be welcome news for firms across the region.

He said: “There is no denying that it’s been a really tough period for businesses with so much uncertainty in the economy and significant rises in costs.

“It is, therefore, refreshing that we finish 2025 with two positive pieces of news that both inflation and interest rates are falling, meaning we’re heading in the right direction.

“I’ve been speaking to lots of businesses in recent weeks and there is a sense that activity has picked up and there is some cautious optimism as we head into the New Year. The positive news this week will hopefully add to that.

“Coventry and Warwickshire has proven to be an incredibly innovative and resilient economy in the face of such difficult conditions and I am confident that is absolutely ready for take off in the next 12 months.”