The beginning of May 2019, the Governor of the Bank of England, Mark Carney said that despite the uncertainty ahead with Brexit, if the economy continues to keep growing “It will require more, and more frequent interest rate increases, than the market currently expects.”
Interest rates have remained static over the last 8 months at 0.75% and after the financial crash of 10 years ago, the Bank of England has kept interest rates fluctuating between 0.25% and 0.75%. While this has given businesses, which are struggling and opportunity to borrow more money at a small cost, the ones who are continuing to not see sustained growth could be under serious threat.
Jade Greenhow, Insight Data Operation Director comments;
‘Businesses who just got through the financial crash in 2008 should be commended, but the ones who haven’t grown since then are potentially under serious threat with this announcement. Operating on tight margins, low profitability and high borrowing are a recipe for disaster in the case of an interest rate increase’
Jade Greenhow goes onto say;
‘A rise in interest rates will result in business unable to afford the to repay their loans which has potential to be devastating. Close to home recently, the construction giant, Kier Group is a prime example of this with shares plummeting 41%, their lowest since 1999 following profit warnings. Interest rate increases could be critical to the Group going forward. It’s not all doom and gloom though. Insight Data has recognised an overpopulated Fenestration market so these increases may clear out the static businesses and allow more room for businesses with a strong marketing strategy, increased product development planning and a relentless sales approach an opportunity to reap the rewards.’
Whether your business is operating statically at the moment or if you are poised to take advantage of the interest rate increase, Insight Data’s databases with over 70,000 potential customers is a no brainer to have access too to either save you business or prosper from times ahead.