Close Menu
  • News
  • Home
  • In Profile
  • Finance
  • Legal
  • Technology
  • Events
  • Features
  • Wellbeing & Mental Health
  • Marketing
  • HR & Recruitment
  • About
  • Advertise
  • Events Calendar
  • Business Wall
  • Subscribe
  • Contact
  • 0843 289 4634
X (Twitter) LinkedIn YouTube
Trending
  • Risk Assessments for Employees who are Deaf or have Hearing Loss
  • Nominations for the 2026 Bold Woman Award by Veuve Clicquot open
  • SEO 101 for SMBs: Reaching Customers with the Right Visuals
  • ChatControl is an Invasion of Our Digital Living Spaces
  • European Businesses Facing Increased Costs Due To Supply Chain Disruption
  • New measures to tackle fraud come into effect
  • Dementia Advocate Shares Tips For Supporting People With Dementia When Flying
  • SME Today talks to Sa’ed Anabtawi, Product Director, WOLF
X (Twitter) LinkedIn YouTube
SME Today
  • About
  • Advertise
  • Events Calendar
  • Business Wall
  • Subscribe
  • Contact
  • 0843 289 4634
  • News
  • Home
  • In Profile
  • Finance
  • Legal
  • Technology
  • Events
  • Features
  • Wellbeing
  • Marketing
  • HR & Recruitment
SME Today
  • About
  • Advertise
  • Events Calendar
  • Business Wall
  • Subscribe
  • Contact
  • 0843 289 4634
  • Twitter
  • LinkedIn
  • YouTube
  • RSS
You are at:Home»News»The Bank of England’s Dilemma: Growth or Inflation Control? Analysts Weigh In
The Bank of England's decision to maintain its key interest rate at 5.25%

The Bank of England’s Dilemma: Growth or Inflation Control? Analysts Weigh In

0
Posted By sme-admin on November 2, 2023 News

The Bank of England’s decision to maintain its key interest rate at 5.25% has sparked a range of perspectives and reactions from financial experts and industry leaders. George Lagarias, Chief Economist at Mazars, observes the ongoing struggle within the Bank, highlighting the challenges of a stagnant UK economy and the delicate balancing act faced by its board members. Michael McGowan, Managing Director of Foreign Exchange at Bibby Financial Services, notes the impact on businesses, particularly SMEs, and the potential consequences of exchange rate fluctuations. Meanwhile, Mike Randall, CEO of Simply Asset Finance, stresses the resilience of small businesses in the face of adversity and calls for greater support and solutions to ensure their continued growth in the coming year. As the Bank’s stance on interest rates becomes clear, the implications for the UK’s economic landscape and the role of government and financial institutions in assisting SMEs come into sharper focus.

George Lagarias, Chief Economist at Mazars comments: “Another day, another pause and another fight at the BoE. As expected, the UK central bank retained its key interest rate for the second time in a row, George Lagarias, Chief Economist at Mazarsmirroring the Fed’s decision yesterday. It is clear that the Bank’s board members are looking outside the window at an economy that has barely grown in the past year. Unlike the US, the holder of the world’s reserve currency, the UK can’t fiscally support its economy without risking a backlash in the bond market, similar to last September’s. Further hiking would risk tipping a barely growing economy into a recession. External members seem to disagree, possibly adhering to stricter economic dogma. However, the Bank’s intention is now clear, and the scale has been tipped for growth rather than for controlling inflation.”

Michael McGowan, Managing Director, Foreign Exchange, Bibby Financial Services, Comments “After September marked the first pause in a brutally long run of rate rises, it’s come as no surprise that the Bank of England held the interest rate steady again today – especially after this week’s fall in food price Michael McGowan, Managing Director, Foreign Exchange, Bibby Financial Services, inflation. Businesses may dare to hope the summit has been reached and hikes are at an end.

Yet a rate of 5.25 per cent is no walk in the park for businesses – and SMEs, who rely most on external finance, will be feeling the pinch hardest. What’s more, for the 53% of UK SMEs that import and/or export across borders, the rate pause has already sent the pound tumbling against the dollar and the euro, which represents a potential a blow to profitability. 

It’s critical then that SMEs –– the backbone of the UK economy – closely monitor their foreign currency needs while fluctuations persist, to mitigate the risks of a weaker pound and current volatility.”

 Mike Randall, CEO of Simply Asset Finance says, “A steadying of interest rates will undoubtably relieve some pressure for small businesses, but there are still fundamental problems to be solved if they are to thrive in the coming year.”

Mike Randall, CEO of Simply Asset Finance  “These are firms that have remained unwaveringly resilient in the past few years, facing stubborn inflation, some of the highest interest rates on record, persistently high energy costs and ongoing supply chain issues. Yet support available to small firms – which represent 99% of UK business – has still remained limited, and in some cases has been cut back in recent months. 

 “Recently announced government commitments, such as the Prompt Payment & Cash Flow Review, are certainly a step in the right direction, but the job is far from complete and all eyes will be on the chancellor’s Autumn statement next month. Despite the odds often being stacked against them, we are continuing to see SMEs investing in their growth as they know business must go on. But to ensure they can effectively pursue that journey to growth, it will be the responsibility of the financial industry and the government alike to help clear the path of any obstacles, and  give business leaders the confidence they need to feel empowered.”

 

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Dementia Advocate Shares Tips For Supporting People With Dementia When Flying

Are you flying blind on your most important business decisions?

OneMetric forms strategic partnership with RevOps expert to drive UK growth

Comments are closed.

Follow SME Today on Linkedin and share all the topics you find interesting

The Newsletter

Join our mailing list for the best SME stories, handpicked and delivered direct to your inbox every two weeks!

Sign Up
Personal Pension offer
Events Calendar
    • Marketing
    September 9, 2025

    SEO 101 for SMBs: Reaching Customers with the Right Visuals

    August 29, 2025

    OneMetric forms strategic partnership with RevOps expert to drive UK growth

    • Finance
    September 3, 2025

    Five ways to monetise your business EV chargers

    September 1, 2025

    Are you flying blind on your most important business decisions?

    • People
    August 14, 2025

    A Life Worth Saving – A Tribute to Dame Stephanie Shirley CH, 1933–2025

    August 12, 2025

    Finance Director Returns As Judge For National Business Awards

    • Health & Safety
    September 2, 2025

    1 in 3 employees anxious about lack of first aiders at work

    July 1, 2025

    Temperatures Soaring: Is Your Workplace Becoming Unsafe?

    • Events
    September 9, 2025

    Nominations for the 2026 Bold Woman Award by Veuve Clicquot open

    July 22, 2025

    South West Expo Delivers Outstanding Event at Swindon’s STEAM Museum

    • Community
    July 11, 2025

    Building community, one cause at a time

    June 23, 2025

    Celebrating One Year In Fairford Supporting The Community

    • Food & Drink
    August 22, 2025

    How to get stocked by major retailers as an SME

    July 18, 2025

    Warning to Small Businesses Over New Food Waste Regulations

    • Books
    September 3, 2025

    New book on conquering fear of public speaking

    August 7, 2025

    Learning to Leave a Legacy in Business

    About

    SME Today is published by the same team who deliver The Great British Expos’. We have been organising various corporate events for the last 10 years, with a strong track record of producing well managed and attended business events across the UK.

    Join Our Mailing List

    Receive the latest news and updates from SMEToday.
    Read our Latest Newsletter:


    Sign Up
    X (Twitter) YouTube LinkedIn
    Categories
    • Books
    • Community & Charity
    • Education and Training
    • Environment
    • Events
    • Features
    • Finance
    • Food and Drink
    • Health & Safety
    • HR & Recruitment
    • In Profile
    • Legal
    • Marketing
    • News
    • People
    • Property & Development
    • Sponsored Content
    • Technology
    • Transport & Tourism
    • Wellbeing & Mental Health
    • ABOUT SME TODAY: THE GO TO RESOURCE FOR UK BUSINESSES
    • Editorial Submission Guidelines
    • Privacy
    • Contact
    Copyright © 2025 SME Today.
    • ABOUT SME TODAY: THE GO TO RESOURCE FOR UK BUSINESSES
    • Editorial Submission Guidelines
    • Privacy
    • Contact

    Type above and press Enter to search. Press Esc to cancel.