Comments on today’s Bank of England interest rate decision

“By announcing the highest rate rise in 27 years to tackle 40-year high inflation, the Bank of England has shown its teeth and an unwavering desire to control inflation: even in the face of a looming recession. With other major economies moving rates in similar increments, today’s increase of 0.5% comes as no surprise.

“However, with many in the market facing skyrocketing energy and input prices, significantly higher borrowing costs and flatlining sales, it really is going to be a testing period for businesses. Working capital remains that untapped source of funds that will facilitate survival and hasten growth, once we come out of this period of economic uncertainty.”

Alistair Baxter, Head of Receivables Finance, Taulia