BUSINESS stalwarts Sir Tom Hunter and Lord Willie Haughey hailed the Bank of England’s decision to hold interest rates at 5.25% for the second month running as “good news” as eurozone inflation also fell more sharply than expected to 2.9%.

Describing the Bank’s Monetary Policy Committee’s decision as welcome news for hard-pressed households and businesses dealing with higher borrowing costs, both Sir Tom and Lord Willie expressed concern that with fixed-rate mortgage deals coming to an end for over one million mortgage holders in the UK, nearly all of them will see an increase in their monthly repayments.

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Lord Willie, saying that he didn’t think inflation would fall much before the end of the year, noted: “The target is 2% by the middle of next year and they do have to get there but the underlying current in the economy just now is not looking good. More and more people are talking about unemployment, people are talking about housing.”

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But Sir Tom, highlighting some business success in the news last week, said “it’s not all doom and gloom” as he pointed to fashion retailer Next which raised its full-year profit guidance for the fourth time this year as the onset of cooler weather boosted sales in the second half of October.

Led by chief executive Lord Simon Wolfson, Next added £10 million to its profit forecast which now stands at £885m for the full year. This followed a 4% increase in sales during the three months to October 28, double the pace of growth previously anticipated.

Lord Willie added: “Simon Wolfson has done an amazing job [at Next]. He has looked at what is happening online and in stores. Under his stewardship, it has come on in leaps and bounds.”

Describing Next as one of the “best-run retailers in the world, never mind the UK”, Sir Tom said: “It’s a good business, well run and taking care of its customers.”