📖 Your Q2 Earnings Guide: Discover the Stocks ProPicks AI Highlights to Jump Post-EarningsRead more

Nearly half UK small firms feeling hit from higher rates - survey

Published 18/09/2023, 22:38
© Reuters. FILE PHOTO: Men walk past a retail unit available to rent and a store offering sale items on Petticoat Lane, in London, Britain, August 23 2023.  REUTERS/Peter Nicholls/File Photo

LONDON (Reuters) - The higher cost of borrowing is hurting almost half of small firms in Britain, according to a survey published on Monday, ahead of an expected 15th back-to-back increase in interest rates by the Bank of England later this week.

The British Chambers of Commerce said 46% of firms it surveyed said the increase in rates so far was having a negative impact, while 45% said they were not directly impacted.

Retailers and hospitality firms were among those feeling the hit the hardest, the BCC said.

Shevaun Haviland, director general of the lobbying group, said business investment was being held back because of the burden of higher debt bills.

© Reuters. FILE PHOTO: Men walk past a retail unit available to rent and a store offering sale items on Petticoat Lane, in London, Britain, August 23 2023.  REUTERS/Peter Nicholls/File Photo

"The Bank of England has indicated rates are nearing their peak," she said. "Businesses need clarity and certainty this week, that an end to the cost-of-borrowing pressures are really on the horizon."

The BoE is expected to raise Bank Rate to 5.5% from 5.25% on Thursday, extending the monetary policy tightening that it began in December 2021 as it tries to dampen the inflationary pressures in the economy. But many economists and investors think the BoE will go on pause after Thursday's expected move.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.