BoE – Biggest Hike in 33 Years – Reaction
“The hikes are getting bigger. This is the single largest rise in interest rates since October 1989 and it will have devastating consequences for both consumers and businesses alike. Millions of consumers with debt such as mortgages, credit cards, and personal loans are going to see their finances stretched to breaking point; the Financial Conduct Authority has suggested that more than 100,000 are at risk of losing their homes next year. Meanwhile, the glimmer of certainty consumers once had thanks to the promised two-year energy price cap has evaporated faster than the Truss government. Likewise, businesses face higher borrowing costs, limiting investment, and a consumer base which is tightening its belt.
“Given such a testing economic climate, businesses must be wary of simply increasing prices and placing yet more strain on consumers. Rather, they must identify strategies that lower costs and drive sales while ensuring products remain affordable.
“There’s a clear solution. Brands and retailers spend a collective £27 billion per year on digital advertising via Big Tech. Herein lies a unique opportunity to use alternate marketing and customer engagement methods, which will divert this huge sum back into the pockets of consumers through cash rewards while allowing businesses to directly reach their intended audience and sales targets. The goals of businesses and consumers are not divergent. In times of crisis, the two must come together to ensure the other’s survival – creative redistribution will be key to achieving this.”
Mohsin Rashid, Co-founder of ZIPZERO