Will firms using facilities management be among those impacted by increased cost of borrowing?
September 7th 16:45 Cost Management
A number of UK businesses using facilities management cost reduction process could be among those to notice the cost of borrowing increasing over the coming months.
Financial planning organisation Informed Choices has claimed that the cost of borrowing is set to rise a knock-on effect of the prolonged low interest rate imposed by the Bank of England.
The comments follow the recent decision by the Bank's Monetary Policy Committee to maintain the current historically-low rate of 0.5 per cent.
Martin Bamford, the organisation's chartered financial planner, said the Bank is unlikely to announce any changes to the rate at any point this year.
He commented: "We expect the MPC to maintain the Bank Rate at 0.5 per cent for at least the rest of this year. It would be a big surprise to see a rate hike now.
"We might see some short-term inflation spikes, particularly when VAT goes up to 20 per cent in January, although a lot of the inflation we see in the UK is imported so interest rate changes here will do little to control it."
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