Skip to content

Unrelenting itch to raise rates overcomes conflicting urge to hold says RSM

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp
Share on email

Kevin O’Connor, RSM’s regional managing partner for Yorkshire and the North East, reacts to the Bank of England (BoE) announcement:

‘The Bank of England was itching to raise rates, despite a reasonable argument to hold off just a little longer. The decision the BoE has taken is understandable. The odds on a recession must rise over time, and when it comes, fiscal authorities want to be ready. They want the ability to stimulate and to do that they need to get rates to a level they can cut from.

‘Conversely though, this was a close-run call. The decision was finely balanced. We face a perfect storm of uncertainty – a combination of a government riven by policy differences, the rising risk of a hard Brexit, subdued inflation, sluggish wage growth and the high street in turmoil. There was a case for the BoE waiting one more quarter for evidence that the slowdown at the beginning of the year was just a blip. As it happened the BoE followed the consensus, and in doing so Mark Carney has partially shed his reputation as the unreliable boyfriend.’

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp
Share on email
Downtown in Business
Which department is your enquiry regarding. If unsure select other.
Please summarise why you are contacting Downtown in Business.

Muse

We are delighted that Muse are our latest Business of the Week. Muse are placemakers, working in partnership to deliver brighter futures for towns and cities.

Read More

Laing O’Rourke

We are delighted that Laing O’Rourke are our Business of the Month for April 2023. Laing O’Rourke is an international engineering and construction company delivering state-of-the-art infrastructure and buildings projects.

Read More

Sedulo

We are delighted that Sedulo are our latest Business of the Week. Sedulo are financial consultants to entrepreneurs providing expertise in accountancy solutions and commercial business advisory services.

Read More

Join The Business Club with Influence

CONNECT. SELL. GROW.

Join the fastest growing business club in the UK and conect with the right people to grow your business.