Interest Rates Have Dropped: What This Means for Your Business
The Bank of England has cut interest rates to 4.25%. Good news? Sort of.
The Good
– Cheaper borrowing — Loans and overdrafts tied to the base rate could see a small dip in repayments.
– Exporters — New trade deals with the US, EU and India might open doors.
The Not-So-Good
– Inflation is high — up to 3.5% in April.
– Water, gas and electricity bills shot up — +26% for water alone.
– National Insurance costs for employers are rising.
Bottom line?
Costs are still climbing — and interest rate cuts might not move fast enough to balance it out.
What You Should Do Now
– Review your loan agreements — some lenders don’t pass on cuts automatically
– Look at fixed vs variable rate offers if refinancing
– Keep an eye on export opportunities — but don’t count on miracles
In Rochdale, Oldham, and Bury, we’re seeing mixed reactions — some businesses refinancing loans, others focusing on cost control. Both are smart.
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