According to a Bank of England (BoE) survey, British businesses are once again expected to raise their prices, in the face of high inflation and a cost of living crisis.
However, survey results reveal that price increases are only due to rise by 5.4%, representing the slightest increase since February 2022.
Some commentators believe that these figures signify a fall in inflationary pressure, as the recent flurry of interest rate hikes by the BoE seem to be having the desired effect.
Interest rates have been on the rise since December 2021, reaching a high of 4% in February 2022.
Financial market analysts predict the BoE to raise interest rates to 4.25% in March 2023, with a possible peak of 4.75% in the latter half of the year.
In a speech at a closed-door event hosted by the Brunswick Group last Wednesday, Andrew Bailey, Governor of the Bank of England said: “At this stage, I would caution against suggesting either that we are done with increasing Bank Rate, or that we will inevitably need to do more”.
Continuing, Bailey remarked that: “Some further increase in Bank Rate may turn out to be appropriate, but nothing is decided.”
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