Seven of the Bank’s Monetary Policy Committee, which oversees interest rates, voted this week to hold the rate at 5.5%. Two members voted for it to be cut.
Kate Nicholls, chief executive of UKHospitality, said: “It’s disappointing that we’re not seeing interest rates ease when we have seen sustained falls in the rate of inflation.
“Many hospitality businesses are still struggling with Covid-related loans repayments due to persistently high interest rates, and it continues to suck money away from investment and business growth.
“Hospitality has a track record of driving economic growth, creating jobs and helping regenerate towns and cities, when it has the financial headroom to invest. A lower interest rate is a key component of freeing up cash for businesses, and I hope to see rates come down next month.”