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02 November 2017

FSB in Scotland on interest rate increase

Reference number: SPUR0211

For the first time in more than 10 years the Bank of England has raised interest rates.

The official bank rate has been lifted from 0.25 per cent to 0.5 per cent.

Responding to the decision Andy Willox, the Federation of Small Businesses’ (FSB) Scottish policy convenor, said:

“Today’s interest rate decision was perhaps inevitable. But it will put additional cost pressures on some Scottish businesses, when many are already reporting that rising overheads are harming plans for growth.

“If interest rates were to increase dramatically, this would put a burden on existing borrowers, including many smaller Scottish firms. Further, some businesses with plans for expansion could struggle to find the necessary affordable finance. Therefore until we see the effect of today’s move, there should be no further increases.”