0808 1644 222

Business groups respond to interest rates rise

August 15, 2018     |     Posted by:     |     Category: Blog, News

Business groups, including the Confederation of British Industry (CBI), the British Chambers of Commerce (BCC) and the Institute of Directors (IoD) have responded to the Bank of England’s decision to raise interest rates for the second time in a decade.

Members of the Bank’s Monetary Policy Committee (MPC) voted to raise interest rates from 0.5% to 0.75% – representing the highest level since March 2009. Bank of England Governor Mark Carney has suggested that additional ‘gradual’ rate rises could be implemented in the future.

Commenting on the rise, Alpesh Paleja, Principal Economist at the CBI, said: ‘The case for another rate rise has been building, with inflationary pressures being stoked by a tight labour market and many indicators now suggesting that weak activity in the first quarter of 2018 was a blip.’

Meanwhile, the BCC did not welcome the rise, and called for a ‘sustained period of monetary stability’. In its statement, the business group said: ‘The decision to raise interest rates, while expected, looks ill-judged against a backdrop of a sluggish economy. While a quarter point rise may have a limited long-term financial impact on most businesses, it risks undermining confidence at a time of significant political and economic uncertainty.’

The IoD also warned that the rise in interest rates could have an impact on confidence levels. Tej Parikh, Senior Economist at the Institute, stated: ‘The rise threatens to dampen consumer and business confidence at an already fragile time.

‘The MPC would have done well to hold off until its November meeting, allowing it to account for October’s all-important Brexit deadlines. But in reality, the Bank had tied its hands with recent communications, and the rate hike will come as little surprise.’

How will the interest rates rise impact your business?

If your concerned that the increase in interest rates is going to have a significant impact on your business, seek expert advice before you fall into financial difficulty. Our advisers at HJS Recovery are available for a confidential chat about your business and to help you find the right solutions for your business. Contact us today on 0808 1644 222.

Need help with HMRC arrears?

Leave Feedback Here

Enter Your Name Here

Enter Your Email Address Here

Your Comment Here

Contact Us Now
Learn more about how HJS Recovery can benefit your business

Through the years our team of experts have helped hundreds of UK companies buckling under financial pressure find their way back to sustainable growth. Whether you need advice on dealing with creditors, repaying business debt, setting up a payment schedule with HMRC or any other pressing issue, we’re the company to call. We’ll guide you every step of the way through the process of restructuring, refocusing and recovering.

HJS Recovery has nine offices at strategic locations around the country. We’re never far away and no matter where you are, we’re here for you 24 hours a day, 7 days a week. Give us a call and speak to one of our highly trained and discreet team members. They understand that each company’s circumstances have unique characteristics and as such are expert listeners. Give us a call today and set yourself and your company back on the path to a more sustainable, profitable future.

0808 1644 222
Get Started - Now