Recently we saw the announcement that The Bank of England would be raising their base rate to 1.25%, which is the highest rate for over a decade. However, now Andrew Bailey has expressed that new action may need to be taken once again due to the greater persistence of inflation caused by the recent reopening of the economy after the Covid pandemic, a shortage of UK workers, and the recent Russian war against Ukraine
Mr Bailey, the Bank Governor, said in a speech at Mansion House that a 50 basis point rise - from 1.25% to 1.75% - will be
one of the options for the Monetary Policy
Committee when it next decides on rates on 4 August.
“Mr Bailey expresses that “At the MPC's last meeting we adopted language which made clear that if we see signs of greater persistence of inflation, and price and wage setting would be such signs, we will have to act forcefully. In simple terms, this means that a 50 basis point increase will be among the choices on the table when we next meet. 50 basis points, and anyone who predicts that is doing so based on their view."
The Governor finished by saying “Let me be quite clear, there are no ifs or buts in our commitment to the 2% inflation target. That's our job, and that's what we will do”.
Ways in which businesses can combat the continuous rise in interest rates is to utilise finance options such as equipment finance, business loans or refinance. These methods will help your business cope with the continuous rises in inflation as they manage your cash flow more effectively whilst stabilising or even growing the business.
Now is the time to act to keep your business moving forward!
To find out more about the Benefits of Asset Finance, Equipment Finance or Business Loans then please contact one of our account managers: info@approved-finance.co.uk or call 01908 429888 or alternatively click on the link to download the full PDF: https://www.approvedbusinessfinance.co.uk/your-business-finance-guide
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