The UK Interest Rate Increase: What does this mean for Liberis?
What are interest rates?
Interest rates are set by the Bank of England in order to influence the amount of spending in the economy. These then work towards ensuring that inflation (in other words, the pace that price rises) returns to the UK’s 2% target as sustainably as possible.
Last week the Bank of England raised the interest rate for the second time in a decade, taking it from 0.5% to 0.75% which is the highest level it's been since March 2009!
Several economic factors have led to the increase, such as:
Inflation currently being above target - in other words, the weak pound has raised the prices of the things we buy
Growth in the UK economy as we bounced back from the Beast from the East!
And pay rising faster than prices, easing the squeeze on living standards
An increase in interest may sound bad - particularly if you have a lot of debt - but it is also sign of a growing economy, and one that can support higher wages too. Plus, if we make small increases in interest rates now, it will help us avoid the need for bigger ones later on.
What does this mean for Liberis?
Liberis’ prices will not be changing with interest rate increase. We are always trying to add value for our customers and that goes for the small businesses we fund - both existing and new - as well as any brokers or affiliates that we work with.
In fact, with our new intelligent pricing, funding with Liberis is now more affordable than ever! As our model looks at your individual business to give you a quote tailored to your profile and performance. Give it a go and find the funds to boost your business today!
Bank of England raises UK interest rates - BBC News
What are interest rates? - Bank Of England Knowledge Bank
Visual summary: Inflation Report August 2019 - Bank of England