Economists at banking group ING predict that inflation will fall below the Bank of England’s 2% target at the start of Q2. They believe that the reduction in the energy price cap will bring inflation down to 1.9% in April and 1.4% in June. This, they say, will prompt the Bank to cut interest rates. ING expects inflation to stay below the Bank’s target “for much – if not all – of 2024.” They add: “That should help to unlock a summer rate cut.” ING expects the first rate cut – from the current 16-year high of 5.25% to 5% – to come in August. Meanwhile, Goldman Sachs believes the Bank will start to lower interest rates in June. It expects rates to fall to 4% by the end of this year and 3% by June 2025.

BFS Comment:

Positive news, assuming ING are correct, that should encourage business to consider investing for the future. Whether this be for growth, purchasing new equipment or a combination of the two, but you need help raising the necessary finance, then call us at BFS.

#Financeforgrowth #fallinginflation #workingcapital #assetfinance

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