British venture capitalist Jon Moulton says the success of the UK economy this year will be decided by interest rates, adding that a base rate of 5 per cent ‘could occur’ within 12 months because of soaring inflation.
The British Chambers of Commerce (BCC) has complained that the Bank of England’s move to cut interest rates to 5.25 per cent does not go far enough to guard against ‘worsening global and domestic [economic] conditions’.
For the past few years the cheap cost of borrowing has helped growing businesses acquire and expand rapidly. But with inflationary fears now stoking worries over the need for rate rises, James Crux examines the effects of rate fluctuations on the growth strategies of ambitious companies...
