Ian Girling, chief executive of Dorset Chamber, said: “The latest interest rate rise is another blow for many hard-pressed businesses.
“While not unexpected, it will be disappointing for those businesses in Dorset most exposed to borrowing costs, cash flow pressures and consumer discretionary spend.
“Inflation rates have remained at stubbornly high levels despite 12 consecutive increases in the interest rate, which is now at its highest level since 2008.
“The combination of high interest rates and high inflation means the worst of both worlds for many firms as operating and borrowing costs both go up.
“The government should consider further action to break this vicious cycle by addressing supply side issues and measures to boost economic growth, such as through investment in infrastructure, skills training, and global trade.”