Will they won’t they; the debate over interest rate rises goes on with no answer set in stone yet.
In June it seemed clear that Bank of England chief Mark Carney was going to push ahead with a rate rise towards the end of 2014. We covered it here and talked about the detrimental effect it could have on zombie businesses that can only survive in a market without any rate rises. Indeed, we pointed out that business buyers would be keenly watching on because zombie businesses represent some attractive acquisition opportunities.
Well, these SME that are clinging to life could, it appears, hang on a little longer yet as the purported interest rate rise is not guaranteed to go ahead. In a meeting at the start of the month (6-7 August) two members of the Bank of England's Monetary Policy Committee (MPC) voted to raise interest rates.
This is the first time in three years that policymakers have voted for a rise. However, it shows that the majority (seven of nine) want to keep interest rates at their historic low of 0.5 per cent.
For those exploring business acquisition opportunities, it would be wise to keep a close eye on how the matter develops. If the rise does still go ahead, it is predicted that a large number of SMEs would fall into financial distress.
Monitoring the health of these companies can be a great way to get value for money when snapping up the businesses or their assets should they fail.
At this stage economists are going through the minutes of MPC meetings with their magnifying glasses to predict just when the 2009-set interest rate could finally rise. The fact that two members have voted for the rise is significant but it still shows the conservative nature of many when approaching the move.
For now, however, everyone from business owners and business buyers down to the average punter on the street will have to keep waiting to get a concrete answer to the question: will they, won’t they?
Bring to the market this leasehold specialist car sales and servicing facility located in Horncastle, Lincolnshire. The trade was established as a limited company in 2005.
LEASEHOLD
The company is an online vehicle purchasing platform, providing a fast, hassle-free car-selling service for the end user. A competitor to the likes of webuyanycar.com and Motorway, the company is a well-established online vehicle purchasing platform...
Bringing to the market this denim and casual wear retailer, boating a user friendly comprehensive online presence.
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