Paul Slevin, President of Chambers Wales South East, South West and Mid, said:

“The decision by the Bank of England to increase the interest rate was to be expected as it attempts to tackle soaring inflation. However, it will add further concern to businesses in Wales already facing significant cost pressures and labour shortages amid a weakened economic outlook.

“With a predominantly SME concentrated business landscape in Wales, the impact of the increase on small businesses who may be reliant on banking or overdraft facilities is concerning.

“Businesses have been raising the alarm about spiralling prices since the beginning of last year and an increased interest rate is unlikely to address many of the global causes of this.”