A rate cut could boost SME confidence, global uncertainty and future hikes could limit the long-term impact โ so ongoing investment and planning is key to stay afloat.
All signs point to a May rate cut from the Bank of England โ a potential green light for SME investment, as over six in 10 (62%) SMEs say they will feel more confident investing if rates fall. But in todayโs uncertain climate, a cut no longer holds the promise it once did.
On paper, lower rates should be a boost for SMEs and the economy, easing borrowing costs and encouraging business investment. But relief from a cut could be short-lived, as the Bank may need to raise rates again later in the year to curb inflationary pressure due to tariffs friction.
This threatens to dampen SMEsโ ambition โ meaning investment plans are delayed further, but SMEs canโt afford a โwait and seeโ approach to decision making. Against economic uncertainty, businesses that continue to invest and plan for every scenario will stay ahead of the competition.
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