Commenting on the UK CPI (consumer price index) slowing to 2%, Ian Warwick, Managing Partner at Deepbridge Capital, said: “While inflation may have slowed slightly to fall within the Bank of England’s target of 2% this does not mean that rates won’t pick up over the coming months. Many early-stage businesses will be thriving in the recently reopened economy, but they will continue to watch the debate around the decision on a subsequent rise in interest rates very closely as this will directly impact how much they are able to borrow at a crucial time. With inflationary pressure continuing it raises the question of exactly how long the bank can hold interest rates at current levels before it is forced to step in, subsequently causing a problem for growing, early-stage companies who require access to funding as we focus on economic recovery.
