Commenting on the Bank of England’s decision to raise the base interest rate from 0.1% to 0.25%, Kitty Ussher, Chief Economist at the Institute of Directors, said:

“Business leaders will be relieved that the Bank has demonstrated its determination to take action on inflation by leading the world in raising rates even as the Omicron situation remains uncertain.

“Our internal data over the last few months had been causing us concern that high expectations of future inflation are increasingly embedded. Yesterday’s inflation data confirmed our suspicion because it showed price rises spreading across the economy rather than being confined to transitory factors.

“At this point in time, most business leaders are more concerned about inflation than the rising cost of debt and so this demonstration of leadership by the Bank will be welcome.”