Interest rate prediction could boost firms using facilities management
June 7th 15:56 Cost Management
British businesses that are cutting operating costs by using facilities management services could be among those to be encouraged by one expert's interest rate views.
Michael Baxter, editor of online business magazine Investment and Business News, has predicted that the Bank of England will not increase the interest rate for the rest of this year.
The comments follow the publication of a report by the insolvency trade body R3, which showed that a rise to anything above two per cent would leave a number of firms fearing for their future.
The rate is currently being held at an historical low of 0.5 per cent.
However, the Organisation for Economic Co-operation and Development has recommended that the Bank set a rate of 3.5 per cent.
Mr Baxter commented: "I don't think it's going to change. It will stay as it is.
"I doubt there would be any forces emerging in the Bank that would manifest itself in the form of pushing for a [higher] rate of interest for a while. For now the majority of movers within the Bank will stick with low interest rates for quite a long time yet – certainly until the end of this year."
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