Interest rates hike: B2B experts react

Atul Bhakta, CEO of One World Express, a leading cross border e-Commerce solutions provider, said: “While we fully expected further rises to interest rates on the path to curbing inflation, today represents a significant leap – and one which must be tempered carefully to avoid feeding a recession.

“Many businesses are already struggling to find the right balance between seeking growth and avoiding risk. Some are doing little more than ticking over in hopes of better market conditions in the near future; One World Express’ recent research highlighted that 28% of businesses fear they will not survive the year. This is a testament to the uncertainty businesses are grappling with, and allowing the cost of debt and borrowing to spiral will exacerbate the issue.

“The ramifications of businesses collapsing would, of course, be very serious. It would mean job losses and further damage to the UK economy. So, greater support is required – I would like to see the Government consider a range of support measures, from improving SME access to finance and potentially even payment holidays on debt, through to greater focus on fuelling cross-border trade. Ultimately, businesses need access to as many potential customers as possible, so cutting down red tape for those who want to sell beyond Britain’s borders would help boost exports and offer new opportunities to the private sector.”

Workplaces must see the bigger picture:

Chieu Cao, CEO of Mintago, said: “Today’s BoE decision will do little to help the Britons who are struggling in the midst of the cost-of-living crisis. In the current climate of soaring inflation, driven largely by skyrocketing food and energy costs, saving money has also become increasingly difficult. Not all savings accounts will reflect the changes to the base rate, and it still will not come close to the rate of inflation. Meanwhile, those with debts, particularly mortgages, will likely see their repayments increase.

“We’re living through very challenging economic conditions right now. As such, it’s more important than ever that people feel able to voice their concerns about their situation and empowered to take control of their finances; and this needs to happen in the workplace, where not enough is being done.

“By providing their staff with better financial support – whether that is advice or platforms that help them manage their finances – employers can do a lot to alleviate the stress many people are facing. Reviewing salaries is one thing, but bosses need to see the bigger picture. Can they help their employee get a clearer idea of their overall financial situation and make more informed long-term decisions about their finances? This would make a huge difference and I would urge organisations of all sizes and sectors to consider how they are helping with their staff’s financial wellbeing at this critical time.”