Investment

UK businesses cut investment, as the interest rate rises

Senior Executives from the Bank of England suggest that the higher interest rates are denting capital spending, however, are expecting a slight increase in wages. Business leader have commented that as there was an increase in interest their investing has decreased by 8%. Despite this, a 0.5% wage growth is predicted. This is hinting to the BoE having to now tighten their monetary policy in 2023. Moreover, inflation expectations within businesses were unchanged. Post Pandemic the UK economy entered into a recession which resulted in higher interest rates and higher energy

Property Consulting

Will mortgage costs go down in the UK?

The housing prices having fallen fourth month in a row suggests falling mortgage rates. There is also and increase in competition for providing the best rate since the cost of living, was declared a crisis. The rates are expected to hit approximately 4% in March. Currently, the average two-year fixed mortgage rate is 5.78 per cent, while the average five per cent is slightly lower at 5.61 per cent, according to the personal finance data firm Moneyfacts. Rates have decreased by 0.21 per cent since the same time last month. If it does not fall as quickly as expected then the

Investment

Threat of recession for the U.K. – investment will do the trick.

Soaring inflation rates in all sectors is causing a huge decline in customer spending power, due to a decrease in disposable wage. The double blow from slowing post-lockdown growth and rising living costs after Russia’s invasion of Ukraine could result in a fall in gross domestic product (GDP) for two consecutive quarters, which is the definition of a recession. The return to lower rates of activity in the health sector after a winter rush to vaccinate people against Covid-19, as well as households reining in their spending amid the soaring cost of living, are also expecte